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The corporate tax rate is not as important because taxes will still be paid on payroll and other uses of the money. The effective tax rate is not going to chang
by gnopgnip 11y ago
The corporate tax rate is not as important because taxes will still be paid on payroll and other uses of the money. The effective tax rate is not going to change much as the corporate tax rate changes because so much of the companies expenses are going to payroll and bonuses.
- Retric 11y agoThe goal of corporate taxes is to collect revenue from profits when a foreign entity own the company. Taxing people only works when the owners live in your country. Worse, high personal tax rates can encourage wealthy people to leave your country either on paper or directly. PS: If your corporate tax rate is zero, then your country is often better off discouraging foreign investment.