Rethinking the corporate income tax

It is hard to find anything positive to say about the corporate income, or profits, tax. InefficiencyEconomists across the ideological spectrum agree that the corporate profits tax is woefully inefficient:– It warps corporate decision-making, inducing expenditures made only to reduce a company’s tax liability.– The compliance costs are astronomical, often exceeding 60 cents for every dollar of revenue that the government raises from taxing corporate profits. How would you like to spend $6,000 per year calculating that you owe Uncle Sam $10,000?– It fosters overreliance on debt. Corporations often need to borrow money to replace funds that government taxed. In […]

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