What happens when Governments raise taxes on big Corporations?
We know many people love to see Corporations pay higher taxes, but do those
same people see any benefit from it?
same people see any benefit from it?
61-69, M
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justanothername · 51-55, M
If the company operates around the world as many big techs do then they set their offices up in a low tax country like Ireland and pay their tax in that country and hold the rest of their cash off shore. It can also depend on where the revenue was generated originally.
Raising or lowering taxes… both have down sides. If you raise them too much you risk loosing tax revenue from affected companies.
Paying a more medium sized tax rate might be a better option.
Lower them too much and you risk public backlash.
Raising or lowering taxes… both have down sides. If you raise them too much you risk loosing tax revenue from affected companies.
Paying a more medium sized tax rate might be a better option.
Lower them too much and you risk public backlash.
DogMan · 61-69, M
@justanothername I wholeheartedly agree.
Reason10 · 61-69, M
@justanothername [quote][quote]Raising or lowering taxes… both have down sides. If you raise them too much you risk loosing tax revenue from affected companies.[/quote][/quote
There is actually a term for that. It's called the Laffer Curve. (Created by Art Laffer, one of the economics geniuses who assisted President Reagan in giving America the greatest economy of the 20th Century.) Too low a rate and government loses money. Too high a rate and companies engage in tax avoidance strategies. Accountants get rich. Laffer believed the percentage rate was somewhere in the middle. It was in the Reagan tax cuts, and by 1986 those tax cuts raised an ADDITIONAL TRILLION DOLLARS to the federal budget.
[quote]Lower them too much and you risk public backlash.[/quote]
Paying taxes and financing the legitimate functions of government is NOT a popularity contest. Public backlash comes from raising taxes and WASTING that money on welfare for bums who don't want to work.
There is actually a term for that. It's called the Laffer Curve. (Created by Art Laffer, one of the economics geniuses who assisted President Reagan in giving America the greatest economy of the 20th Century.) Too low a rate and government loses money. Too high a rate and companies engage in tax avoidance strategies. Accountants get rich. Laffer believed the percentage rate was somewhere in the middle. It was in the Reagan tax cuts, and by 1986 those tax cuts raised an ADDITIONAL TRILLION DOLLARS to the federal budget.
[quote]Lower them too much and you risk public backlash.[/quote]
Paying taxes and financing the legitimate functions of government is NOT a popularity contest. Public backlash comes from raising taxes and WASTING that money on welfare for bums who don't want to work.
Reason10 · 61-69, M
@justanothername @justanothername Not really, not since the Democrats started borrowing TRILLIONS to finance their welfare state.
justanothername · 51-55, M
@Reason10 Please supply proof to support your baseless claim.