[DangitBobby]

That... Doesn't make sense to me. If "We" (the company) suddenly pay 10% in taxes instead of 20% and we gift 35% of the difference to our execs, the government is now collecting 0.1 + 0.1x0.35x0.3 instead of 0.2. Righ? I mean, even if it was all gifted to execs, it would be at most 0.1 + 0.1x0.3, which is still definitely less than 0.2.

[didgeoridoo]

Think on the margins. At zero net investment and holding other expenses constant, each marginal revenue dollar can either go to corporate profit and be taxed at 21%, or go to an employee’s pocket and be taxed at their individual marginal rate. For the highest paid employees, this will be 37%, plus additional taxes for FICA/Medicare (“payroll tax”). Even this ignores the fact that corporations are much better at legally avoiding taxes than natural persons are.