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We would all be better off if corporate taxes were reduced to low single digits in favor of regular individual income tax and VAT bit the optics aren't good so
by andromeduck 6y ago
We would all be better off if corporate taxes were reduced to low single digits in favor of regular individual income tax and VAT bit the optics aren't good so it's never gonna happen except if you're big enough to have creative accountants and political/economic clout like Ikea and others.
- dahfizz 6y agoIts amusing and depressing that we are in a situation where all experts, from across the political spectrum, can agree on what a more optimal tax system would be. Yet the structure of our democracy basically makes a more optimal solution impossible. https://www.npr.org/transcripts/499490275 https://www.npr.org/transcripts/499490275
- mikem170 6y agoI've held that point of view, but heard something recently that gave me pause: The high tax rates of the 1960's were the reason that companies paid their employees more and/or invested in research, producing things like Bell Labs. The reasoning was that when corporate tax rates are low companies will use the extra money to play financial games, and when corporate tax rates are high companies know they are better of off giving the money to retain/recruit good employees or spending it on research to grow the business instead.
- andromeduck 6y agoI'm not sure I entirely buy that. Sector monopolies were much more common around that time too which makes broader research investments easier to recuperate and there was also strong market incentives to do so because the bottom kept getting eaten up by foreign and particularly asian manufactuerers.