And, more specifically, why are corporations and people taxed differently? Both have money coming in and going out for necessities
Does that make sense?
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Everyone else here is technically correct but I think missing the point of your question. Income here refers to the money that individuals make from wages, while profits refer to money that companies make after accounting for all of their expenses. Since these are two different sources of economic activity, governments will often tax these two at different rates. The reason they might have one lower than another depends on whether they want to encourage/discourage certain kinds of economic activity, or whether they are worried about the welfare impacts of their taxes on individuals/companies. For example, if a government really wants to incentivize investment, they might lower the tax rate on profits, while another government might be worried that their people don’t have enough money to spend on goods and services, so they lower the income tax rate.
So even though it is true that both businesses and individuals have revenues and expenses to account for, there’s really no problem taxing them at different rates, it simply reflects the values of the government setting those rates
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