Hi all
This may be a bit more UK focused, but from what I can see it applies to a good few other countries too.
In the UK, personal income tax is graded based on income, with a tax free threshold, then the basic income tax level between £~12,000 to £50,000, then a higher rate above £50,000, then another band too. This seems fair as the more you earn, the more of that ‘higher’ income gets taxed.
Why isn’t this the same for corporation tax? This is a flat rate regardless of turnover/profit, with small companies having to pay the same proportion of their profits as large multinational companies. Wouldn’t it be fairer to have bands like personal income tax?
In: Economics
Just noting that it is graduated in the Netherlands: 19% up to €200k, then 25.8%.
Sure, you can cut your business into pieces, but cutting a big business into pieces of €200k is not going to be worth the effort to save ~€12k (~6% of €200k).
So mostly it’s small single owner businesses that benefit.
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