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Perhaps the difference is not in the "donations to politicians" that the cynical like to say, but in the "ability to afford expensive tax consultants." Small c
by unreal37 7y ago
Perhaps the difference is not in the "donations to politicians" that the cynical like to say, but in the "ability to afford expensive tax consultants."
Small companies pay what the government tells them to pay. Big companies hire someone who figures they can save 5% on their taxes by having their factory in Tennessee instead of Kentucky.
It's just the ability (and scale) to afford to employ any advanced tax strategies.
I have friends who live in Hawaii. A high tax state. Another friend moved to Puerto Rico, a low tax one. You don't have to be big to save on taxes.
- harimau777 7y agoI think that one issue is that there is a significant difference in the ability of a corporation to shop around for favorable differences compared to an individual or small business.
- unreal37 7y agoYeah absolutely. We rarely think that countries are "competitive" with each other when it comes to tax deals and tax rates. But they are. Just like people shopping around for the best deal on a car, why do we expect companies to NOT shop around for the best deal on taxes?