A large reason why corporations often pay less taxes than individuals is the vast financial benefits afforded to them by placing capital accounts and corporate headquarters overseas. In fact, according to the Tax Policy Center, corporate taxes accounted for just 9 percent of Federal tax year in a recent tax year, whereas individual taxes comprised 42 percent.
Currently federal government deficit spending is over $1 trillion dollars. This is partly due to lower tax receipts. If tax policy where to change in such a way that corporations could exchange zero percent tax for revenue and earnings that more than covers the cost of taxes, then that would theoretically be a win-win scenario.Whether or not the President's Framework For Business Tax Reform can do that is debatable.
Currently federal government deficit spending is over $1 trillion dollars. This is partly due to lower tax receipts. If tax policy where to change in such a way that corporations could exchange zero percent tax for revenue and earnings that more than covers the cost of taxes, then that would theoretically be a win-win scenario.Whether or not the President's Framework For Business Tax Reform can do that is debatable.
The following infographic, courtesy of Coupons.org, illustrates where the corporate money goes, and why it goes there.
Source: http://coupons.org
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