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Idea: everyone gets free meals at work (not a taxable benefit!), use of company cars, generous travel budgets (not a taxable benefit!), etc. So suddenly your co
by kspaans 11y ago
Idea: everyone gets free meals at work (not a taxable benefit!), use of company cars, generous travel budgets (not a taxable benefit!), etc. So suddenly your compensation has increased quite a bit, but your personal income tax bill is the same. Now instead of the IRS chasing tax-inverters and shell corporations, now they have to go through every worker's books to try and guess what kind of benefits are taxable or not. (OK sure, the corporation will still pay goods and services taxes on those benefits it provides for its employees... hopefully.)
That's one possible argument against not taxing corporations. It could be even more expensive to enforce taxable benefits rules if there were no corporation taxes. I think I read somewhere that C-level managers in South Korean corporations have _very_ modest salaries but get many benefits like these that aren't (currently) taxable.
- jandrese 11y agoEh, if a company is abusing the tax code to provide a ton of perks for its employees I would have a harder time complaining about it, at least when compared to the company abusing the tax code to keep billions of dollars locked up in vaults overseas doing nothing.
- walshemj 11y agoso switch to the simpler paye system as used in the UK employers have to say how much benefit in kind they give to emploeeys every year in the p60 form makes taxing it simple