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Just because a corporation doesnt pay any corporate tax, that doesnt mean the Government doesnt get paid their fair share when their employees pay an income tax
by mortdeus 8y ago
Just because a corporation doesnt pay any corporate tax, that doesnt mean the Government doesnt get paid their fair share when their employees pay an income tax on the salary thats paid to them by the corporation.
Having a 35% corporate tax AND a 35% income tax on all earners who make more than 120k/year, means the Government would essentially recieve %70 of all of Netflix's revenues, assuming inbound revenue and outbound expenditures are maintained at a 1:1 rate of growth.
Netflix doesn't pay (nor should they be paying any) taxes right now because they invest heavily in producing original content using borrowed money. When that original content flops they still have to pay back all that money they lost plus interest.
Netflix might have made a ton of profit this year but im pretty sure they are still heavily in debted (in the billions last i checked). To tax netflix at 35% now that they are finally starting to see a return on their investment would only cripple the corporation from maintaining their upwards momentum of growth.
You only want to start taxing a corporation when they are completely self reliant on their own revenue when funding their day to day operations and investments towards R&D.
- m463 8y agoAnd the customers pay for Netflix with post-tax currency. I wonder where all this falls on the laffer curve: https://en.wikipedia.org/wiki/Laffer_curve https://en.wikipedia.org/wiki/Laffer_curve