Levying taxes on companies is stupid.
Think about it, where does a company get it’s money? There are three places it can get more money from to pay taxes.
1) Owners/Stockholders – This penalizes the proprietors/partners who then have less incentive to start/expand their businesses and more incentive to layoff workers, close their businesses and retire or get another job working for someone else or the government. If it’s a corporation, this lowers the stock price (and by extension your 401K). Over time this will lower everyone’s standard of living.
2) Workers – This causes lower wages/salaries as workers who leave or retire are replaced by workers at a lower wages & inferior benefits package. Over time this will lower everyone’s standard of living.
3) Prices – Companies charge the highest price the market will bear without losing market share. If the cost of producing the widget goes up because of taxes, prices will be raised across the industry. Over time this will lower everyone’s standard of living.
We have the highest corporate taxes in the world. Cut taxes on companies and watch the economy boom!
Here’s an article that talks about exactly what my article talks about: Why taxing the rich doesn’t work.