That's how taxes work generally though. I already paid income taxes on my salary, but when I spend it on something I have to pay taxes again, and then the retailer has to count it as taxable income as well. Anytime money changes hands the government gets its vig. I don't see how the corporate tax is so egregiously different.
No, if we are talking about VAT then companies have to make the following sum
€800 VAT the company charged to clients
€500 VAT the company paid to suppliers
===== -
€300 VAT the company has to pay to authorities
This system makes sure that VAT over any good will only be charged once. VAT usually rolls over from one company to the next till it reaches its destination, the consumer.
ULTIMATELY, the consumer pays the VAT. The consumer cannot deduct VAT.
I doubt anyone makes this mental calculation when they’re considering buying something at a store.
Sure, big ticket items people might shop around for a lower tax but will they not buy something based on minimizing the amount they pay to the government?
No one is saying it's egregiously different. The question was why corporate taxes are lower than personal income taxes, the answer is that there is no logical reason why they should be equal or higher. No one complains that their sales tax rate is lower than their income tax rate.
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