4 ms·

It's really hard to evade personal income tax, so why shouldn't the government just give up and tax corporations at 0%, while having high progressive personal i

• spacephysics 5y ago
  That hinders technological progress. Typically newer technology in most consumer fields is bought and “tried out” by the wealthy. If it’s popular enough, economy of scales comes in and makes it more affordable. Adding that heavy of a tax will disincentivize some wealthy from buying the product, leading to slower, if any, feedback loop to give that tech to the lower income classes. You may ask, well the tech is already made. And a private jet won’t become affordable to normal folks anytime soon. True, but then the issue is, who determines exactly which items are taxed, and how much? Most likely a domino effect that was not intended or predicted will occur, causing worse outcomes than the pseudo planned-economy hoped for.
• rcpt 5y ago
  This is right. Corporate taxes just create a tax evasion industry. If there were no corporate tax then shareholder profits would be higher. It's be simpler to tax the shareholders and an individual is unlikely to have an army of lawyers doing their taxes
  • notahacker 5y ago
    When corporate tax is zero and corporations don't hire tax specialists because nobody audits them, individuals don't need an army of specialists to hide most of their income and expenditure in a corporation, and basically anyone that isn't an entry-level employee can do it...
    • rcpt 5y ago
      How do I hide most of my income?
      • notahacker 5y ago
        "Expenses". They get audited at the moment though, because the companies paying them owe tax...
• pjc50 5y ago
  This provides an even bigger shift to turn "income" into "capital gains". Or have your own personal shell corporation accumulate wealth and influence for you.
  • extropy 5y ago
    Yeah, just have your own theme park company, that manages your private mansion. All business expenses, you are just a janitor.