Well, corporations use resources that cannot be pinned to a single individual. The example that comes to mind would be putting out trash for the city to collect[1].
[1] I realize that companies pay separately, or use private collection in many cases. It's just an example of a company using a resource that can be (and in some cases is) paid for by taxes.
How do you efficiently administer a road tax[1]? How do you measure a company's use of the military defense of a nation? The police protection that makes their locality safe for business in the first place? What about the nearby public park that attracts families who frequently go to a nearby ice cream shop? What about the fact that the local bar attracts people who get into fights on the sidewalk?
How would this work? 20% every time you buy or something? Or targeted on things that are scarce or a limited (eg higher tax on oil than lettuce)? It seems to me that targeted taxes end up encouraging elaborate workarounds - this is a problem.
its interesting that during the senate hearing, one senator asked this exact question to the panel members who were experts in tax law. there reply was that some shareholders are foreigners. so therefore they wouldnt be taxed in the US at all on the earnings from corp
That's not the same as being taxed on the dollars you get each week though. With Job' scenario, what portion of his wealth hasn't been taxed yet? Sure it will get hit at some point but that's not the point.
Most people get taxed every time they get paid. I'm not saying his situation was/is wrong, or that he has done something immoral. I'm just saying it's very different.
Comments
Why zero corporate tax is an outlandish idea? Why not tax only individuals?
1) Corporate tax is only about 10% of total budget revenues.
2) Zero corporate tax promotes business growth.
3) Corporate taxes are ultimately paid by individuals.
Why is having no tax for individuals outlandish? Why not tax only corporations?
Well, corporations use resources that cannot be pinned to a single individual. The example that comes to mind would be putting out trash for the city to collect[1].
[1] I realize that companies pay separately, or use private collection in many cases. It's just an example of a company using a resource that can be (and in some cases is) paid for by taxes.
Probably there should be a resource tax, not profit tax?
How do you efficiently administer a road tax[1]? How do you measure a company's use of the military defense of a nation? The police protection that makes their locality safe for business in the first place? What about the nearby public park that attracts families who frequently go to a nearby ice cream shop? What about the fact that the local bar attracts people who get into fights on the sidewalk?
[1]Gas taxes are obviously not the answer.
How would this work? 20% every time you buy or something? Or targeted on things that are scarce or a limited (eg higher tax on oil than lettuce)? It seems to me that targeted taxes end up encouraging elaborate workarounds - this is a problem.
Yes, and the utility companies are extremely efficient collectors of that kind of tax.
its interesting that during the senate hearing, one senator asked this exact question to the panel members who were experts in tax law. there reply was that some shareholders are foreigners. so therefore they wouldnt be taxed in the US at all on the earnings from corp
Steve Jobs had a salary of $1 didn't he? Taxing him on that wouldn't pay for for much.
He was taxed, when he was selling his stocks.
That's not the same as being taxed on the dollars you get each week though. With Job' scenario, what portion of his wealth hasn't been taxed yet? Sure it will get hit at some point but that's not the point. Most people get taxed every time they get paid. I'm not saying his situation was/is wrong, or that he has done something immoral. I'm just saying it's very different.