05-10-2021, 12:17 PM
(05-09-2021, 04:41 PM)BFritz21 Wrote: False. You're the one who doesn't understand.
Not sure if you took any classes that covered taxes or employers paying taxes (I have associate degree in accounting), and I also took classes on business management, so I understand it all.
All income is taxed.
Actually it is pretty clear that you do not understand this issue at all. There are two ways for owners (stockholders) to get profits out of a company.
If a corporation has a million dollars income it can pull that money out, pay corporate income taxes on it, then pay it out to stockholders who then have to pay income tax on it again.
Or the corporation can re-invest the million dollars in income, and pay zero corporate income tax. The re-investment increases the value of the stock. The stockholders can then get their money by selling their stocks at a profit, but they pay about half as much income tax on the money they make because it is "capitol gains".
The higher the corporate tax rate the more incentive there is for companies to re-invest their income instead of pulling it out and paying corporate income tax on it. Tax deduction like "wages paid" are also more valuable the higher the corporate tax rate.
(05-09-2021, 04:41 PM)BFritz21 Wrote: they'll just find ways to be more efficient and do things with less workers to off-set the taxes.
Corporation are ALREADY doing everything they can to keep the prices of labor down. They are not just saying "Hey lets waste a lot of money on labor we don't need because we have a low corporate tax rate." The cost of labor is a business expense that all businesses want to keep as low as possible no matter what the corporate tax rate.
This is almost as stupid as the claim that wealthy people would rather sit on their money making zero income with it instead of investing it and paying taxes on the profits they make. Even with higher tax rates people are going to prefer making money and paying taxes over making nothing.
