4 ms·
I'm fairly sympathetic to abolishing corporate taxes, since corporate taxes are a flat rate on all shareholders, and some of it even falls on workers, however..
by Eridrus 8y ago
I'm fairly sympathetic to abolishing corporate taxes, since corporate taxes are a flat rate on all shareholders, and some of it even falls on workers, however...
Corporate taxes provide an additional incentive to reinvest the profits of your business, rather than just sitting on them.
They also allow national governments to extract tax revenue from foreign shareholders.
And it's that second point that is really the biggest deal, since a unilateral lowering of corporate taxes and replacement with income taxes may increase the tax burden on your citizens.
Ireland likes having a low tax rate because it has a comparatively low tax base and can incentivize these extremely large companies to pay taxes in Ireland, but as you can see, this harms the rest of the EU.