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Milton Friedman of all people actually had a really clever solution for this all back in the day: > …the abolition of the corporate income tax, … with the requ
by legitster 5y ago
Milton Friedman of all people actually had a really clever solution for this all back in the day:
> …the abolition of the corporate income tax, … with the requirement that corporations be required to attribute their income to stockholders, and that stockholders be required to include such sums on their tax returns.
Basically treat all corporate income as pass-through income to shareholders. So if Acme Co has 1 million shareholders and they generate $100 million in revenue, each shareholder adds $100 in income to their personal income taxes next year. If corporations want to keep shareholders, they will need to pay out dividends at least enough to cover the tax bill. But that's between shareholders and corporations.
- AnimalMuppet 5y agoSo here's a grocery store that has profit of 1% of revenue. They (or their shareholders) have to pay tax on the revenue? That can't work - not without them raising prices 20% or so...
- legitster 5y agoYou could easily devise it so that expenses are also passed through, but I wouldn't mind if corporate grocery stores lost their tax advantage and had to raise prices to be more competitive with mom and pop stores that operate as S Corps.
- cwkoss 5y agoPushing megacorps out of low-profit high-revenue businesses is one of the benefits of this policy. We'd be better off if every grocery store was independently competitive with other grocery stores.
- AnimalMuppet 5y agoBut would we be better off with 20% higher grocery prices so that the government has the money they want?
- refurb 5y agoWhat? No we wouldn’t. A small mom and pop cant get the same prices based on volume. In the end consumers just pay higher food prices.