It doesn’t matter if corporations pay taxes because the money just flows to people who own equity in or work for those corporations, and they pay taxes.
I actually don't get why corporation should pay taxes.
When the profit of the company is distributed, or paying the employees, the employees/shareholders will be taxed on that money.
Corporations don't pay taxes. Whatever taxes are levied on them, they build into the price of what they sell, which is ultimately paid for with money that's already been taxed.
They do pay a portion though, through payroll taxes and their employee's income taxes. They also pay property taxes and shareholders pay capital gains taxes. I'm sure there are even taxes I am forgetting about. This is only talking about the tax on corporate profits.
why corporations have to pay tax at all?! They are owned by investors who pay tax on dividends and capital gains. And employees pay taxes wherever they live.
Corporations get numerous specific legal benefits enforced by the power of the state. Nobody is required to organize as a corporation, so the benefits must be worth the cost. Corporations pay taxes because they get benefits nobody else gets. These should be give for free? That doesn't make sense. The real crime is it's the little guy who can't setup the multi-national tax-swaps or invest billions in "inefficient investments" that end up paying the top 39%.
I don’t fully understand why corporations are taxed in the first place.
All the money the corporation takes in ultimately gets spent on operating expenses, or is profit that is then distributed to shareholders who then owe taxes on that income.
If it’s annoying and counter intuitive that corporations are in some legal senses considered people, it is even more confusing that they pay taxes.
This sets up a crazy situation where employees of the corporations start lobbying and messing with policy and regulations so it favors the organization.
Seems like bad piled on top of bad. Increasing the tax rate on investment income is basically the same thing as taxing corporations, but would remove all these perverse incentives.
My father, who is quite wise and right about many things, is very fond of stating that corporation's don't pay taxes - they just pass them on to other people. He owned a local redi-mix company until he retired, and they routinely adjusted wages and prices in response to local, state, and federal tax changes. It's a fact of life that the money corporations pay comes from somewhere, whether it's on the 'in' side or the 'out' side of the balance sheet.
AFAIK they don't pay corporate income taxes... because they don't make corporate income (aka profit). They do pay other forms of taxes, eg. payroll, medicare, unemployment, sales tax.
I don't mind that we demand that companies pay taxes.
I can assure you that if it was up to me they'd either pay or get blocked. I really don't understand this mentally whereby companies avoiding taxes is Ok. Who do you think pays the taxes that they don't?
Clearly corporations shouldn't have to pay taxes. The money they spend already fosters the economy so they're already at least as good as any government.
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