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We have progressive taxation for individuals - why not for corporations? I don't have an army of accountants to avoid the corporate tax rate for my small busin
by eric_b 6y ago
We have progressive taxation for individuals - why not for corporations?
I don't have an army of accountants to avoid the corporate tax rate for my small business. So as a percentage I pay vastly more taxes than the multinationals.
Why can't we have varying rates depending on the size of the business?* Bigger businesses have a bigger tax rate. This would also incentivize organizations to stay small.
*Calculating the size of a business is tricky. Is it revenue based? Number of employees? Does it change per sector? Anyways, I'm sure it's possible to find a decent set of metrics.
- dragonwriter 6y ago> We have progressive taxation for individuals - why not for corporations? Because corporations are, by nature, arbitrarily divisible, so progressive taxation for corporations just encourages division of corporations into units that pay the minimum tax rate. There are business forms that allow businesses (often, but not exclusively, small businesses) to avoid corporate taxes entirely (S corps and passthrough LLCs), whule also providing the benefits of incorporation compared to sole prop and partnership forms.
- eric_b 6y agoThis isn't true practically though. Most multinationals consist of dozens of sub-entities but the books all still roll up to the parent. If Google wanted to "get smaller" they would literally have to break apart, which is the same thing that the anti-trust folks want them to do. This seems to solve it neatly in my mind.