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Pros and cons of corporate tax?

Mithrae

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What are the advantages and disadvantages of a generalised tax on businesses?

Compared with say higher tax on capital gains to personal income, I'm not sure I can see any real advantage to corporate tax. But I know next to nothing on the subject, so keen to learn. A couple of fairly obvious points to consider:

> Whenever possible, businesses' tax expenses will simply be passed on to customers, so in effect they're as much a tax on consumers as anything else.

> Where they actually do affect the businesses' bottom lines, it means less money for re-investment in that company (in contrast to taxing the money when it leaves the company as capital gains).

> Such taxes can stifle new and small businesses, and hence general innovation and improvement. (Could the corrolary argument be made, that with small business exemptions they'd have a competitive advantage which encourages inmovation?)

> Are taxes easier to evade or avoid for businesses, or for personal income?


Interested in folks' opinions. And let's pretend that all else being equal it's better for a government to have more revenue, not less, so no presumptions that lower taxes are inherently good ;)
 
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Winchester

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No tax on a corporation would be a hella nice tax shelter to put all one's assets into.
 

TobyOne

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There isn't consensus that corporate tax is passed on to the consumer. There is somewhat of a minor consensus that it burdens the employees of the corporation more.

There should be no corporate tax. Corporate income is already taxed through dividends, capital gains on sales of its stock etc. Plus, corporate taxes have drive jobs offshore.
 

TobyOne

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The bolded is a ridiculous premise, btw.


What are the advantages and disadvantages of a generalised tax on businesses?

Compared with say higher tax on capital gains to personal income, I'm not sure I can see any real advantage to corporate tax. But I know next to nothing on the subject, so keen to learn. A couple of fairly obvious points to consider:

> Whenever possible, businesses' tax expenses will simply be passed on to customers, so in effect they're as much a tax on consumers as anything else.

> Where they actually do affect the businesses' bottom lines, it means less money for re-investment in that company (in contrast to taxing the money when it leaves the company as capital gains).

> Such taxes can stifle new and small businesses, and hence general innovation and improvement. (Could the corrolary argument be made, that with small business exemptions they'd have a competitive advantage which encourages inmovation?)

> Are taxes easier to evade or avoid for businesses, or for personal income?


Interested in folks' opinions. And let's pretend that all else being equal it's better for a government to have more revenue, not less, so no presumptions that lower taxes are inherently good ;
)
 

Reformedfindlay

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What are the advantages and disadvantages of a generalised tax on businesses?

Compared with say higher tax on capital gains to personal income, I'm not sure I can see any real advantage to corporate tax. But I know next to nothing on the subject, so keen to learn. A couple of fairly obvious points to consider:

> Whenever possible, businesses' tax expenses will simply be passed on to customers, so in effect they're as much a tax on consumers as anything else.

> Where they actually do affect the businesses' bottom lines, it means less money for re-investment in that company (in contrast to taxing the money when it leaves the company as capital gains).

> Such taxes can stifle new and small businesses, and hence general innovation and improvement. (Could the corrolary argument be made, that with small business exemptions they'd have a competitive advantage which encourages inmovation?)

> Are taxes easier to evade or avoid for businesses, or for personal income?


Interested in folks' opinions. And let's pretend that all else being equal it's better for a government to have more revenue, not less, so no presumptions that lower taxes are inherently good ;)

With that premise, you're already shifting the discussion to where you want it to be, to the left. You're not interested in other peoples' opinions.
 

Mithrae

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The bolded is a ridiculous premise, btw.

With that premise, you're already shifting the discussion to where you want it to be, to the left. You're not interested in other peoples' opinions.

Perhaps I worded that poorly. All governments need revenue, whether it's to pay for defence, infrastructure, police and judiciary, health and welfare, education and science, or simply to service existing debts. I'm only interested in genuine discussion on whether or not (or to what extent) a general corporate tax should be included in the revenue stream and why/why not; and by why not, I mean what revenue options are better, not just "taxes are bad mkay" or proposals for a radical overhaul of the government structures overseen by both major parties of pretty much any developed democracy.

Anyone who finds themselves unable to entertain that notion even for the sake of discussion needn't participate in the thread, of course.
 
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LowDown

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Interested in folks' opinions. And let's pretend that all else being equal it's better for a government to have more revenue, not less, so no presumptions that lower taxes are inherently good ;)

Sorry, but I can't participate in a discussion in which the premises are idiotic.

It's a shame, too, because you made some good points before you came to this nonsense.
 
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