People say that big corporations don’t pay their fair share in taxes by using loopholes. What exactly are these tax loopholes?
In: Economics
The Government wants business to do stuff, like open a factory in a poor part of town. Since businesses don’t just obey orders from the central government in the US (not a communist country), So Congress tries to **~~bribe~~** entice the business by offering them a tax break. Some of these are employment specific, allowing them to deduct the salaries of new employees hired to work in the new facility.
Businesses do this, when it’s worth it, and if they do it enough, they can use the loophole constructed by Congress to pay no taxes. It’s totally paying their fair share, because Congress built the loophole, not the company.
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