April 30, 2019

TAX WHAT YOU DON'T WANT, NOT WHAT YOU DO:

Profitable Giants Like Amazon Pay $0 in Corporate Taxes. Some Voters Are Sick of It. (Stephanie Saul and Patricia Cohen, April 29, 2019, NY Times)

Corporations' ability to whittle down their tax bills has long been a target of criticism by Democrats, and this presidential campaign is no exception, particularly among left-wing candidates who argue that corporations should be accountable for wage inequality and its impact on low- and middle-income workers.

Though both parties have sought to lower the top corporate tax rate in the last decade -- President Barack Obama proposed lowering it from 35 percent to 28 percent -- Republicans in 2017 pushed it down to 21 percent, in addition to expanding some generous tax breaks. The new law allowed immediate expensing of capital expenditures, for example, in order to goose investment. That was one of the primary reasons that more corporations paid no federal taxes, according to the report.

The threshold problem with these arguments is: why would we want to punish business for being profitable when that is literally the point of being in business.  Tax their consumption instead.

Posted by at April 30, 2019 3:55 AM

  

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