- corporate taxes have one of the highest deadweight loss of any tax
- corporate taxes get passed to consumers and employees as higher cost of goods and lower wages / benefits
- the USA has one of the highest rates of corporate tax in the world
- handling the complex tax code is more a burden on small firms (as this case shows)
All of this together means we'd be better off dropping the corporate tax entirely and instead tax income, capital gains, or consumption at higher rates.
My apologies, I was a little outdated. Unfortunately can't update the previous comment. What I said was true as of 2017, when the USA had a corporate tax rate of 39%, which ranked third highest in the world.
It was changed to 26.8% by the Trump tax cuts, which ranks 81st in the world. But that's still higher than 144 countries, including Switzerland, Finland, Sweden, Denmark, Norway, UK, and Spain (just to name a few).
- corporate taxes have one of the highest deadweight loss of any tax
- corporate taxes get passed to consumers and employees as higher cost of goods and lower wages / benefits
- the USA has one of the highest rates of corporate tax in the world
- handling the complex tax code is more a burden on small firms (as this case shows)
All of this together means we'd be better off dropping the corporate tax entirely and instead tax income, capital gains, or consumption at higher rates.