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Corporations are _groups_ of people cooperating. That doesn't change anything about why corporations should be taxed, unless you also believe that individual p
by ineedasername 5y ago
Corporations are _groups_ of people cooperating.
That doesn't change anything about why corporations should be taxed, unless you also believe that individual people should not be taxed either. Because after all the company is only people so it should be taxed because it's people that we tax. To break it down into pieces:
1) Corporation are made up of people.
2) The money those people receive directly from the company is taxed
3) The money received by the company is also received by people because the company is, after all, only a group of people.
4) Since money held by the company is also just people's money, and people's money is taxed, the company's money should be also be taxed.
Why should money received by an individual be taxed but when it's pooled & received by a group of people it remains untaxed?
I actually know the next response in this chain: If it's taxed at the corporate level and then given to individual people who are also taxed, it has been double taxed. There's an easy solution to that: The company shouldn't hold on to the money long enough to have it taxed. Keep giving it back to people, pay higher salaries, or invest in R&D.
In that way, it's not even a tax on profits as much as it's a penalty for keeping the money stagnant. By keeping it stagnant you keep it from contributing further to the economy and from receiving enough taxes from individual taxation to pay for all of the infrastructure & other services provided by the government.