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This is just another reason we should ditch corporate income tax. It never made any sense anyway.

by tsotha 13y ago

smartician 13y ago
And replace it with what? A corporate wealth tax?
- tsotha 13y ago
  Nope. I would recover the difference by raising personal income or sales taxes. After all, when you tax corporations their customers are the ones who ultimately pay the tax.
  - i_s 13y ago
    Who "ultimately pays" depends. "...tax incidence or tax burden does not depend on where the revenue is collected, but on the price elasticity of demand and price elasticity of supply." http://en.wikipedia.org/wiki/Tax_incidence http://en.wikipedia.org/wiki/Tax_incidence
    - tsotha 13y ago
      That doesn't contradict anything I said.
      - ivanca 13y ago
        And when the clients pay their employees are the ones who ultimately pay the tax; it's a coherent but meaningless analogy.
rayiner 13y ago
Corporate income tax makes perfect sense. If you have a system that: 1) taxes income to persons; 2) treats corporations as distinct legal persons, as both the U.S.'s and U.K.'s does, a corporate income tax falls out naturally. That is to say, the fact that the corporation and the shareholders are taxed distinctly is a natural consequence of the fact that the "corporation's money" is distinct from the "shareholders' money." This fact is the basis for the advantages of corporate form: that a lawsuit against the corporation only endangers the "corporation's money" not the "shareholders' money." The resulting state of affairs creates a common sense choice for businesses: if you want to treat the corporation as a separate entity when it comes to legal liability, you also have to treat the corporation as a separate entity when it comes to taxation. But though a corporate income tax is theoretically justified, the challenges of enforcing one may make it desirable to get rid of it as a practical matter.
- deleted 13y ago
  [deleted]
- tsotha 13y ago
  >But though a corporate income tax is theoretically justified, the challenges of enforcing one may make it desirable to get rid of it as a practical matter. That was my point. Whether or not you can morally justify it, corporate income tax is easy for multinationals to avoid, putting smaller corporations at a disadvantage and forcing companies to operate more inefficiently.

This is just another reason we should ditch corporate income tax. It never made any sense anyway.

by tsotha 13y ago

This is just another reason we should ditch corporate income tax. It never made any sense anyway.

smartician 13y ago

And replace it with what? A corporate wealth tax?

tsotha 13y ago
Nope. I would recover the difference by raising personal income or sales taxes. After all, when you tax corporations their customers are the ones who ultimately pay the tax.
- i_s 13y ago
  Who "ultimately pays" depends. "...tax incidence or tax burden does not depend on where the revenue is collected, but on the price elasticity of demand and price elasticity of supply." http://en.wikipedia.org/wiki/Tax_incidence http://en.wikipedia.org/wiki/Tax_incidence
  - tsotha 13y ago
    That doesn't contradict anything I said.
    - ivanca 13y ago
      And when the clients pay their employees are the ones who ultimately pay the tax; it's a coherent but meaningless analogy.

rayiner 13y ago

Corporate income tax makes perfect sense. If you have a system that: 1) taxes income to persons; 2) treats corporations as distinct legal persons, as both the U.S.'s and U.K.'s does, a corporate income tax falls out naturally. That is to say, the fact that the corporation and the shareholders are taxed distinctly is a natural consequence of the fact that the "corporation's money" is distinct from the "shareholders' money." This fact is the basis for the advantages of corporate form: that a lawsuit against the corporation only endangers the "corporation's money" not the "shareholders' money." The resulting state of affairs creates a common sense choice for businesses: if you want to treat the corporation as a separate entity when it comes to legal liability, you also have to treat the corporation as a separate entity when it comes to taxation. But though a corporate income tax is theoretically justified, the challenges of enforcing one may make it desirable to get rid of it as a practical matter.

deleted 13y ago
[deleted]
tsotha 13y ago
>But though a corporate income tax is theoretically justified, the challenges of enforcing one may make it desirable to get rid of it as a practical matter. That was my point. Whether or not you can morally justify it, corporate income tax is easy for multinationals to avoid, putting smaller corporations at a disadvantage and forcing companies to operate more inefficiently.