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I used to think that but IMHO the biggest issue today is the growing wealth gap, and how did that gap get so big? Ownership of companies, and more specifically

I used to think that but IMHO the biggest issue today is the growing wealth gap, and how did that gap get so big? Ownership of companies, and more specifically people not getting their wealth from income but from share price appreciation. Getting rid of corporat tax would only make this gap grown even wider and bring down the amount of tax that governments bring in. it would be the worst of both worlds, decreased government revenue and wider wealth gap.

mbesto 5y ago
> Getting rid of corporat tax would only make this gap grown even wider and bring down the amount of tax that governments bring in. That's why this needs to be offset by higher individual taxes. illustrative math: company has $100M revenue, $50M paid in salaries+taxes, $5M "real profit", $0 paid in taxes today because they hide the $5M profit new proposal Company has $100M revenue, $55M paid in salaries+taxes, 0M "real profit", $0 paid in taxes Government now gets to collect $5M in taxes. The burden is higher on salaries+taxes now. This would temporarily push wages down to offset, BUT in the long run it would either (1) the company would have to readjust wages for high performers and (2) increased profits to companies would mean more jobs. Either way, it would simply correct itself.
- chollida1 5y ago
  But again, the rich don't pay taxes like we do so any proposal that attempts to work by increasing individual taxes just won't work:) The company is already paying fair wages, more profits won't change that. in your scenario government revenue goes down as no corporate taxes are now collected and no additional individual taxes will be paid. How does this help the government?
  - mbesto 5y ago
    > n your scenario government revenue goes down as no corporate taxes are now collected and no additional individual taxes will be paid. My scenario very clearly illustrated that the government would collect $5M in taxes where they wouldn't have before. > the rich don't pay taxes like we do so any proposal that attempts to work by increasing individual taxes just won't work:) Which is why consumption taxes work (hence my suggestion of VAT)

mbesto 5y ago

> Getting rid of corporat tax would only make this gap grown even wider and bring down the amount of tax that governments bring in. That's why this needs to be offset by higher individual taxes. illustrative math: company has $100M revenue, $50M paid in salaries+taxes, $5M "real profit", $0 paid in taxes today because they hide the $5M profit new proposal Company has $100M revenue, $55M paid in salaries+taxes, 0M "real profit", $0 paid in taxes Government now gets to collect $5M in taxes. The burden is higher on salaries+taxes now. This would temporarily push wages down to offset, BUT in the long run it would either (1) the company would have to readjust wages for high performers and (2) increased profits to companies would mean more jobs. Either way, it would simply correct itself.

chollida1 5y ago
But again, the rich don't pay taxes like we do so any proposal that attempts to work by increasing individual taxes just won't work:) The company is already paying fair wages, more profits won't change that. in your scenario government revenue goes down as no corporate taxes are now collected and no additional individual taxes will be paid. How does this help the government?
- mbesto 5y ago
  > n your scenario government revenue goes down as no corporate taxes are now collected and no additional individual taxes will be paid. My scenario very clearly illustrated that the government would collect $5M in taxes where they wouldn't have before. > the rich don't pay taxes like we do so any proposal that attempts to work by increasing individual taxes just won't work:) Which is why consumption taxes work (hence my suggestion of VAT)