Wednesday, June 10, 2020

Podcast Episode 26: Taxing Corporations

Each corporation's true purpose is to give profits to the shareholders. There is a going rate for how much it is worth it to risk creating a business in an area. This number rarely changes. If the expenses go up then costs must be cut elsewhere or prices for the product must go up.


Shareholders expect a certain rate of return


When you tax corporations they simply pass on the cost to the customer


Of course, the tax code is so messed up that it isn’t necessarily that simple.


Which of course brings us to our conclusion that the tax code is too complicated and probably immoral


What would a moral tax code look like?


Property taxes


States pay federal

Counties pay states

Cities pay counties

People pay cities


Each city can decide how to tax for services


This allows for the most competition between different tax ideas


Fees for services

-roads

-police

-fire

-military


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