WinterBorn
Diamond Member
There is actually a reasonable reason for having very high corporate taxes.
The corporate/business taxes are only applied on profits. If a business wants to shield their tax liability, they can invest in expansion or growth, thereby showing a much smaller profit, while also hiring more people or paying the existing people better. All of that increases the financial worth of the business, thereby giving the owners a more valuable asset, while still keeping taxes from killing them.
I don't agree with this particular reasoning. But, in the interest of fairness (something rare on these forums), I thought it worth mentioning.
The corporate/business taxes are only applied on profits. If a business wants to shield their tax liability, they can invest in expansion or growth, thereby showing a much smaller profit, while also hiring more people or paying the existing people better
You bet! Absolutely!
All of that increases the financial worth of the business
Wait a minute, the financial worth of the business is based on profit you can actually take out of the business.
If you can never take any profit out, why the hell are you reinvesting?
If you can never take any profit out, why would you ever start a business in the first place?
If you own a business, the best thing to do is pay yourself a salary. That is not part of the profit that can be taxed. Otherwise the business will be taxed on the profit, if you take it out, and then you will get taxed on your income.
And the financial worth of a business is based on the profits, the assets, and the projected profits. If you have a business with $100,000 worth of equipment, that adds to the worth of the business.