Income that goes towards expansion (read op-ex like salaries, or cap-ex like infrastructure) is not taxed, it is "tax deductible". Income that doesn't go towar

Income that goes towards expansion (read op-ex like salaries, or cap-ex like infrastructure) is not taxed, it is "tax deductible". Income that doesn't go towards economic activity (salaries, expansion) but goes back to profit does get taxed - mostly because dividends and capital gains are so much harder to tax for the ultra-rich due to loopholes on offshore tax residence, inheritance tax uplifts, trusts/foundations. The alternative would be to tax dividends and capital gains worldwide at income tax rates -- a great idea but impossible to implement against the resistance of every US millionaire and billionaire (also operationally quite difficult). Tax evasion is evil morally because every dollar they don't pay, others have to pay so they are stealing money from millions of other people. The legal kind of tax evasion is called "tax avoidance" instead, it is still morally wrong if loopholes are created and exploited in a very obvious fashion for the sole reason of avoiding to give back to the society that enabled the profit. For some reason the US and many other countries don't have General Anti-Avoidance Rules where bad-faith tax avoidance structures can be outlawed.