Comment One article for every company? (Score 1) 592
Are we going to have one article for every multinational corporation that uses tax shelters/accounting tricks to avoid paying taxes?
Personally, I don't think what they are doing is "morally" right - but then again, I'm one of those morons who don't think that corporations are people. Frankly, I'm not sure why companies pay taxes (specifically taxes on profits) - I think the rate should be 0 percent. The employees pay taxes (from the CEO to the night custodian). Employees pay taxes to drive to work, use facilities, etc.
If they are using land, they should pay tax on that (i.e. physical presence) - just like any homeowner. If they are using electricity, the pay the utility company (and they shouldn't get a subsidized power bill, unless they have an agreement with a private utility company). A company can't do much with money in isolation. It needs to spend it or invest it and pay capital gains tax.
The biggest flaw that I see is that the company starts "gifting" executives cars and accommodation. The employee might not pay tax on it - it isn't bought from their income. The executive is happy - they get "lower" tax rate effectively (since they don't pay for the car/house). But you can't stop companies from having their own vehicles - Fedex can and should own aircrafts. I don't see a clean way to distinguish these cases.
Maybe someone can enlighten me on why companies are taxed, and other flaws with eliminating corporate tax?