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But the employees pay taxes on their salaries. And Google’s corporate profit is taxed through taxes on dividends imposed on shareholders. The only tax that Goog
by leephillips 6y ago
But the employees pay taxes on their salaries. And Google’s corporate profit is taxed through taxes on dividends imposed on shareholders. The only tax that Google can evade is the double taxation on profits that will be taxed again when distributed. Although it is true that this tax rate is lower than income tax.
- andromeduck 6y agoJust like with income taxes - it doesn't change the tax wedge at equalibrium but it feels better and that's what's important. It's like going to a store where everything is eternally 40% off.
- alfl 6y agoGoogle has never paid a dividend. “Double taxation” refers to taxation post distribution not prior (source: I was a corporate tax accountant). Finally, “evasion” is illegal. “Avoidance” is a legal tax strategy.