Taxing profits is similar (but not identical) to taxing all investment returns. From the company’s perspective, it reduces the value of domestic corporations to

Taxing profits is similar (but not identical) to taxing all investment returns. From the company’s perspective, it reduces the value of domestic corporations to investors (thus advantaging foreign corporations). From the individual’s perspective, it reduces investment incomes (including those funding retirement accounts). In this way, it is passed on. From another point of view, individuals (are supposed to) react to taxes by reducing 'luxury' spending, but businesses don't enjoy luxuries, only their investors do.