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Why not reduce corporate income tax and add 1% revenue tax? If you can't afford 1% you are gonna go bust anyway.
by lukasm 11y ago
Why not reduce corporate income tax and add 1% revenue tax? If you can't afford 1% you are gonna go bust anyway.
- hawkice 11y agoSo, the generic answer for why we favor income or value-added taxes over revenue taxes is that (1) we want to encourage investment, so marginal business expenses are essentially tax-free, and (2) revenue taxes limit the ability for competitive middlemen (who can lower transaction costs) and give massive advantage to vertically integrated semi-monopolies.
- lukasm 11y agoSure, but maybe the benefits outweigh costs. Revenue tax reduces accounting costs, simplifies models, it's better for small startups etc.