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by proxyon
1863 days ago
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I think you're misunderstanding some of the moving parts here. All of those deductions you described would be taken either way, whether the tax is on the individual or on the corporation. They are already taken today to shave down corporate tax liability. So at best, the objection you're raising is a zero sum game. But even worse than that, and as a matter of fact, there would be less incentive to fulfill all of the compliance burden of tracking those deductions if corporations were not taxed but individuals were. |
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- Foreign workers will be even more competitive than they are today relative to domestic (because they won't have to be compensated for the additional income tax burden).
- Capital expenditures, automation, etc will all be more competitive vs. hiring workers.
- Companies look for even more non-worker ways to spend cash, such as increasing their political power via lobbying.
Maybe none of this is bad long term, or it all comes out in the wash eventually, but trying to sell this in the short term sounds like political suicide to me— I don't think the purported benefits of 0% tax on corps is even remotely worth it. Corporations benefit from government services; they can pay taxes directly on the value they generate.