5 ms·
Governments fund their spending with more sensible tax methods? The incentives of a corporate income tax are wacky. It basically disincentives economic developm
by jaredklewis 10y ago
Governments fund their spending with more sensible tax methods? The incentives of a corporate income tax are wacky. It basically disincentives economic development. Also it's possible for multinationals to push income around and largely evade income taxes anyway, making them very unfair to non-multinationals.
- charlesdm 10y agoI agree. I think it's better to tax dividends higher, but say, not tax corporate profits. That would allow you reinvest most of those profits back into the business without taking a hit.
- dingaling 10y agoIf a company has made a profit then it's too late to reinvest that money.It is money that the company didn't find a way to spend. Profits sit in bank accounts or are distributed to shareholders. It might make sense to grant companies a tax-free allowance equivalent to six months of operational costs, but corporation tax is designed to deter hoarding and thereby force money into circulation
- nradov 10y agoThere is no such thing as companies hoarding money. They don't stick billions of Euros in a big vault somewhere. They deposit it in bank accounts (or other similar investments), and then the banks put some multiple of the deposits into circulation through fractional reserve lending.