4 ms·
>Companies don't pay taxes it's the shareholders and the employees who pay taxes. This is false. What do you mean? http://en.wikipedia.org/wiki/Corporate_tax_
by mapgrep 13y ago
>Companies don't pay taxes it's the shareholders and the employees who pay taxes.
This is false. What do you mean?
http://en.wikipedia.org/wiki/Corporate_tax_in_the_United_States http://en.wikipedia.org/wiki/Corporate_tax_in_the_United_Sta...
http://www.bloomberg.com/news/2013-05-22/google-joins-apple-avoiding-taxes-with-stateless-income.html http://www.bloomberg.com/news/2013-05-22/google-joins-apple-...
>if Google "avoids" taxes on its' income it will end up being paid (at probably a much higher rate) by the shareholders and employees
Also not true. Long term capital gains tax is 15%. Dividends are taxed at the same rate, unless you make over $400k per year, at which point you pay 20%. Corporate taxes, in contrast, are 35% at the federal level. Taken with state taxes the effective rate is close to 40% (http://www.kpmg.com/global/en/services/tax/tax-tools-and-resources/pages/corporate-tax-rates-table.aspx http://www.kpmg.com/global/en/services/tax/tax-tools-and-res...). So it's a net loss when Google dodges taxes.
(And I didn't even get into shares held abroad or in retirement accounts.)
(Edits with slightly less confrontational language.)
- jswinghammer 13y agoUltimately everyone pays. Since corporations aren't humans they aren't paying anything. Everyone else in the corporation has to take fewer profits and less compensation as a result of those taxes. They aren't free.