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Your solution to corporations using tax havens is to eliminate all corporate taxes? How does that help? They only pay 6% now, you are saying, so let's have th
by castrodd 2y ago
Your solution to corporations using tax havens is to eliminate all corporate taxes?
How does that help?
They only pay 6% now, you are saying, so let's have them pay 0%?
- willcipriano 2y agoTax the shareholders instead. At a minimum tax capital gains at the same rate as labor. Ideally, don't tax labor at all either, they are taxed plenty by inflation.
- whimsicalism 2y agoi generally think we should tax people, not corporate entities. if we want to extract money from corporations, probably should just tax capital gains directly.
- eastbound 2y agoTax what you want to eliminate. Don’t tax labour. Tax pollution. Of course policy changes tend to remain half done, like Davos’ motto, and we’re left with two taxes.
- tikkabhuna 2y agoSo I can park money in a corporate entity and then use it to buy everything for me? This seems like an amazing loophole. Never extract your cash from a company and you never pay tax!
- koolba 2y agoSpending corporate money on non corporate expenses would be fraud. You can’t do that regardless of the tax rate. What this does allow for is carrying over profits from year to year for small businesses that operate on a cash accounting basis. Which in turn allows multi year planning without taking a 22% hit. Never extracting the profits would lock them away in the corporation with no means of spending them. It’s definitely a possibility, but it’s not really an issue for public corporations because the shareholders wouldn’t want a company just sitting on cash.
- delusional 2y ago> but it’s not really an issue for public corporations because the shareholders wouldn’t want a company just sitting on What if my company just held on to the cash but every share had some ownership of that cash. Sure, it probably wouldn't trade at par, but it would also be silly for it to trade at the payout rate considering it's non taxable. Could the paper backed by my corporation become a new currency?
- s1artibartfast 2y agosure, but if you sold any of that paper you would have to pay taxes on it.
- yread 2y ago> Spending corporate money on non corporate expenses would be fraud Where does it say that? And what are non-corporate expenses anyway? Keeping the founder happy surely is a corporate expense otherwise this guy would rot in prison https://techcrunch.com/2024/04/01/canoo-spent-double-its-annual-revenue-on-the-ceos-private-jet-in-2023/?guccounter=1 https://techcrunch.com/2024/04/01/canoo-spent-double-its-ann...
- xorcist 2y agoFraud? That would be bizarre. Companies buy sports arenas and private jets all the time.
- me_me_me 2y agoWell I can setup a hospitality corporation and also become a client of it. For a price of a $1 I will be cater to.
- renewiltord 2y agoYou can't use a corporation for personal expenses. Like, your home can't be owned by the corp. Your child's school bills can't be paid by the corp.
- deleted 2y ago[deleted]
- 0cf8612b2e1e 2y agoNo, don’t you see, removing those burdensome taxes will spur corporate investment and grow the economy. You may Laff, but I can draw a curve that shows eliminating corporate taxes is the right thing to do. Just don’t ask Kansas.