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
In the US I think it used to be.
The problem with doing this for a corporation is that you can subdivide a corporation arbitrarily. You can’t do that with a person.
Corporation going to get pushed into the new tax bracket by making over $1 million? Nah, it’s now Royal Dutch Shell A and Royal Dutch Shell B, and the CEO splits his time between the two. We now make $500,000 in each corp.
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