4 ms·
Hopefully 15% is for ( Total - 750 )
by harikb 5y ago
Hopefully 15% is for ( Total - 750 )
- LudwigNagasena 5y agoCompanies generally aren’t taxed on revenue.
- Maarten88 5y agoVAT comes close to that and is common outside US.
- seoaeu 5y agoTotal and $750M aren't even the same unit. The former is profit, while the latter is revenue.
- harikb 5y agoI meant would it incentivize a 749 revenue company to lose money to save on the 2.5% extra tax
- alex_young 5y agoWhat you're describing is called a Progressive Tax system: https://en.wikipedia.org/wiki/Progressive_tax https://en.wikipedia.org/wiki/Progressive_tax
- zdragnar 5y agoMost progressive tax systems only have you pay the higher rated on the amount in that bracket to avoid the disincentive. More accurately, this is a form of alternative minimum tax- a higher floor than the normal brackets specifically for those who cross a specific threshold. That does carry a hefty incentive to play games with your accounting, and is ultimately rather foolish since the people it was really aimed at when introduced in the US shifted their income to capital gains instead. Now, it is mostly a way to punish people for becoming upper middle class.
- deleted 5y ago[deleted]
- seoaeu 5y agoThey wouldn't have to lose money, just avoid taking in additional revenue. An incentive certainly, but far from the worst in the tax code. Personally, I think the tax rate should be higher than 15% for all corporations so I'm not so worried that a company might miss out on an even better deal of 12.5%, but I see the concern that a small change in revenue might change their tax bill by millions.