[chechokancho]

Srsly.. Who thinks that, in real terms, they pay anything in taxes?

If you tax a corporation, the tax is passed on to one of three parties.. (We can argue about which ones, but the taxation itself seems quite pointless.)

Who pays?

1) The (so called) "owners" of capital.. These are investors and principles. That's great, but why tax them indirectly like this? Also, what happens when they pay the taxes out of profits (Because that's where they are coming from.. Or else they are going broke) that would otherwise be reserved for jobs or expansion? Aren't we creating price inflation by encouraging corporations to raise prices to pay their taxes? Likewise, aren't we encouraging them to lay off workers and trim benefits?

Since they have so many options for paying the tax (Trim benefits, fire people, raise prices, fail to invest, etc) how can we be sure they EVER pay a nickle of this tax themselves?

Worse, if you tax them till they quit and go do something else, you haven't just lost one job.. You've potentially lost hundreds. Maybe thousands... and your precious taxes too. (Liberals)

2) Workers.. Some claim that the workers themselves pay the taxes through lost raises and benefits. If this is true, who wants to cause any more of that? Why are we beating up on the workers when we have 10% unemployment?

3) Customers. Some claim that the end user pays all taxes as they are incorporated in the purchase price. Again, who wants any of that? Why are we discouraging economic activity at a time of record unemployment and recession? Even if we wanted to tax the fuck out of everyone, why use such a back door approach? Consumer spending is two thirds of our overall economic activity.. Why slap the people who, ultimately, are providing most of the jobs in this country?


Can you think of a viable reason to continue this?

It just looks like nonsense to me.

If it's revenue you want, why not go get it directly? Why distort things with a corporate tax? Can't multinationals manipulate this system anyway to dodge their taxes?

[PharmaDrMan]

It needs work, for sure.

However I can see 90% of the US, declaring themselves a 'corporation' of some kind to avoid taxes, which could lead to big problems.

I'll agree that it is insane to tax corps into the ground, and force them to pass the tax on to others, but there needs to be some system in place for them.

Wal-Mart makes trillions.......Somewhere, somehow, there is a profit. It 'ends' up somewhere. Thus, it's taxed.

If they weren't taxed, (thus arguably being able then to pay more for per hour work, and charge less for a product), ever member of their board would declare every bit of food, every expenditure they had as somehow ' corporate', and thus untaxable. All trips would be corporate related. I'm all for cutting businesses that employ people a break, but they shouldn't get a free pass, just because they employ 100 people.

The US tax code, (which requires city blocks full of computers to understand), is broken and needs reworked.

[VitaliyMurnov]

Think about how much money the IRS blows on corporate enforcement.

[k1ePRlda]

However I can see 90% of the US, declaring themselves a 'corporation' of some kind to avoid taxes, which could lead to big problems. I mean, you can still tax income from the corporation.. When they officers pay themselves.

But to tax corporate profits? It seems misguided.

[Lyikmcmb]

It's a ruse to fuck over the middle class. They've always sold Americans on "tax corporations to be fair" rwrr rwrr rwrr, then provided all the loopholes and tax breaks after the fact, not to mention jacking up product prices to stick the middle class because that's how those darn taxes gotta get paid. The lyin politicians get their votes, corporations get an extra wheel barrow of money, and John Q. Middleclass' eyes glaze over reading income tax procedures and instructions. He gets robbed by the IRS, robbed by the politicians, duped by the warm-and-fuzzy sound of "fairness", and then they kick the shit out of him.

How's that?

Pretty much how I see it..

[ToifvT5S]

Why does the government tax corporations? Because they can.