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LostInParadise's avatar

Should corporations be taxed?

Asked by LostInParadise (23485points) November 9th, 2012

If a corporation leaves its profit in the vault then I can see taxing it, but not the money that gets distributed as dividends. It is double taxation. Taxes should be increased on the top 1% and there should also be a higher capital gains tax, but why should corporations be taxed on the same income that gets distributed to share owners?

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9 Answers

Tropical_Willie's avatar

Like if you are in the top 2% of personal income. Then both groups should not be taxed? ?

Are you balancing the budget by increasing the taxes on the middle class or just stopping the SS and welfare benefits or something else ?

Seek's avatar

Because it’s not the government’s job to support a corporation’s shareholders?

Why should I pay an income tax on the money that’s just going to my car insurance company?

Qingu's avatar

I am totally fine with lowering corporate tax rates as long as we raise upper-income tax rates (including capital gains) by the same amount.

Ideally this would incentivize funneling extra corporate profits into investments and payroll rather than to already wealthy shareholders. Though I’m sure there’s some angle I’m missing.

rojo's avatar

Why should corporations get a break from paying taxes? They are people too are they not?

But this would be an interesting question if they were not.

DrBill's avatar

I have always been a supporter of Corporate taxes, in my opinion, I believe the corporations should be paying the bulk of the taxes rather than the people who made the corporations so rich.

LostInParadise's avatar

What about the people who the corporations make rich, most of whom only made stock brokers rich? Shouldn’t they be the ones to be paying all the taxes?

Seek's avatar

Tax them too.

If you make money, you pay your taxes before you pay anything else. That’s what we poor people do, and I don’t see anyone offering to make my tax rates post-expense.

marinelife's avatar

Yes, they should be taxed. They use resources and have to have regulation (which costs all of us money).

ETpro's avatar

For now, I am with @rojo. But if the 5 supreme corporatists would abandon their absurd claim that corporations are people, I would be in favor of eliminating corporate taxes altogether. I’d prefer that individual tax rates be used to fund needed government.

Why? Because corporate taxes get passed on to consumers in the pricing of goods and services. Not only is that true, but they put our nation’s companies at a competitive disadvantage versus companies operating in tax havens where businesses already operate tax free or at very low tax rates.

If I need to take $1 out of pocket to fund the government, from my own perspective it really doesn’t matter whether I send $0.50 to Washington and $0.50 to Exxon or whether I cut Exxon a tax break and send the whole $1.00 to Uncle Sam. But it matters to Exxon when they compete with offshore energy cartels. I’m not against helping corporations just because they really aren’t people. After all, they hire lots of people.

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