Income tax rates are progressively in the majority of countries, with higher earners paying a larger amount of their income to the government than smaller earners. Why isn’t this done to support small businesses? Large companies do just fine with higher tax rates but it’s small businesses that keep the economy alive so they should get a lower tax rate to support them shouldn’t they? Or is there an underlying economic principle that doesn’t allow this to work.
P.s sorry about the yap
In: Economics
Corporations are different. A corporation can cut itself up into 5 pieces and spread out the profits so that it makes a lower tax bracket. You can’t separate yourself into 5 little people that split your income to get a lower tax bracket. So the answer is because the Corporations would cheat in ways people can’t possibly do
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