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We can see the tax loopholes for that in action today, people already set up spurious companies in order to shift income tax into lower rate corporation tax. Wi
by joosters 11y ago
We can see the tax loopholes for that in action today, people already set up spurious companies in order to shift income tax into lower rate corporation tax. With no corporate income taxes, I expect there would be a sudden burst of very dodgy single-person 'companies'.
- drumdance 11y agoOf course, but it would be offset by literally billions of dollars in profits that would not have to be hidden and gamed. Much of it would be distributed as dividends which would then be taxed as ordinary income. Thousands of companies spend millions on accountants to avoid taxes. Getting rid of the corporate tax would change the economics. Instead of one company hiring accountants to save them millions in taxes, you would have millions of shareholders needing to hire accountants to save them thousands. Edit: And it's easier to police the single-person companies. They can't afford the army of lawyers and accountants the large enterprises can.