4 ms·
You can't have 0% corporate tax and free healthcare and education. Sure you can. You tax more elsewhere, e.g. higher VAT, higher income tax, higher captial
by mafribe 10y ago
You can't have 0% corporate tax
and free healthcare and education.
Sure you can. You tax more elsewhere, e.g. higher VAT, higher income tax, higher captial gains, higher giraffe tax ... The possibilities are infinite.
Taxation is ultimately a social tool to organise how people work as a group/nation, who does what etc.
I think Estonia has or had 0% corporate tax.
- robert_foss 10y agoRight, just to clarify. You can have 0% corporate tax rate, you just have to recoup those taxes elsewhere. And as corporations are benefiting from free education and healthcare they clearly should pay into that system too.
- ptaipale 10y agoI think you should study the field of tax incidence a bit. Corporate tax actually falls on shareholders and workers. It sounds nice: tax those faceless corporations and not us nice citizens. But the actual end result is not necessarily what one may think. You will of course find lots of material claiming this and that about corporation tax, because people are passionate about it, but for some balance, this is a summary I picked at random: https://hbr.org/2014/08/who-pays-corporate-taxes-possibly-you https://hbr.org/2014/08/who-pays-corporate-taxes-possibly-yo... (And in case of Sweden, consider that it is a particularly open economy.)
- xorcist 10y agoEstonia has 20% corporate tax according to https://en.wikipedia.org/wiki/Corporate_tax https://en.wikipedia.org/wiki/Corporate_tax . Sweden has 22% according to the same document. Not a world of difference. Reducing corporate friendliness to the tax rate is overly simplified of course. Sweden is on the whole a rather easy to start a company in, there is one single government entity to deal with and it can all be done online. There are relaxed accounting rules unless you reach a certain size etc.