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> Why can't governments learn that taxing corporations is pointless? Pure ideological point of view with no grounding in reality. It's totally possible to tax
by tasogare 5y ago
> Why can't governments learn that taxing corporations is pointless?
Pure ideological point of view with no grounding in reality. It's totally possible to tax corporations. In fact, some state like Japan and South Korean get more money from enterprises than individuals, the reverse of Europe and US (until recently consumption tax was 5% in Japan, now is 8%, still far less than EU's typical 20%).
The solution you propose doesn't even work well, since it's one more incentive for (mega-)corps to not raise salaries, as keeping salary low means also low taxes.
- adolph 5y agoA political challenge to taxing larger entities is that those entities have increased incentive to avoid tax. This has distortionary effects elsewhere in that it is logical for such an entity to pay fractional X toward a politician’s personal interest instead of the full X to the government.
- TimPC 5y agoMost economists support a 0% corporate tax rate and higher taxes on dividends and capital gains. This closes most loopholes and doesn’t tax money that corporations reinvest in growing the economy.