Fucking insane that 28% is a tax hike.
Should be no less than 90%, like it used to be.
You have to bear in mind that the “like it used to be” part operated when digital card payments were not a thing. A customer would give you cash, and maybe you would write it down in your taxes, but there was no digital indicator of what actually happened.
Small business owners got to stay afloat by swindling the government, and this was the normal way for centuries.
I’m not saying it’s right, just that the high business tax of the past wasn’t as effective as you think it was, and will hit extremely differently this time around in the digital era.
The best thing to have is a variable tax rate that goes up the more profit is made.
That’s how it is in my country.
what if a company decides to split up into 100 smaller companies to avoid taxation?
Good?
Smaller businesses have better wages and hire more people. Smaller businesses are more nimble, flexible, and they’re never too big to fail. Smaller businesses, mean more options, more ideas, and variety is good for the marketplace, consumer, and the country as a whole.
Less consolidation is good! Competition is good!
Smaller businesses are more nimble, flexible, and they’re never too big to fail.
Some of this is questionable and other bits are flat wrong. Small businesses have bigger lending costs and less slack in their workforces, so they’re often contained to focusing on a niche field.
And after a break up or spin off or outsourcing effort, certain components of the old business can become lynchpins for the rest.
That’s basically the story of Cloud Strike. Much smaller than it’s clients, but still too critical to be allowed to fail.
And just because a business administration is broken up doesn’t mean it’s revenues are. Modern conglomerates - Berkshire Hathaway, and Citadel Investments being the most notorious - have big stakes in enormous swaths of private industry. They control enough board seats to function as economic central planners.
Buffet doesn’t really care if he owns one big Coca-Cola or a thousand little ones, just so long as he continues to extract that sweet sweet labor value.
Republicans love to harken back to “the golden age” of america. Ever wonder what paid for it? A big portion was … corporate tax!
https://taxfoundation.org/data/all/federal/historical-corporate-tax-rates-brackets/
Corporate tax is currently at the lowest point since 1940
https://tradingeconomics.com/united-states/corporate-tax-rate
See this big drop in corporate tax? You thank ol’ trumpy for that
Along with personal income tax - Note this is the top bracket of tax
https://fred.stlouisfed.org/series/IITTRHB
Want your golden age back? Tax these fucking billionaire grifters.
Another thing that raising the corporate tax rate does is make it more profitable to re-invest your income into the company. Since they’re only taxed on profits they’ll pay zero taxes if they make zero profit. How do you do that? Expanding your business, spending money on R&D, and paying your employees more.
Edit: Haha, just kidding, they’ll blow it on stock buybacks.
This is SO BAD for the Economy! All those Job Creators laying off Tens of Thousands of Workers will MOVE! We need to Tax the HOMELESS instead! I’m Fiscally Responsible Republican!
