Re:Increasingly, businesses don’t generate profits – they ge...
by spoonie on Friday August 04, 2017 @11:41AM
(#14929504)
> Is it really the spirit of the tax code that $1 in profits earned by a business should really yield $0.48 to the federal government?
But it's profits and not revenues. It's the government that defines what those profits are with their tax deductions, etc. So I think it's pretty fair.
A big hint is up North in Canada where the corporate tax rate is lower: corporations aren't magically more profitable. Canadian dividend recipients even get a 50% deduction on dividend income to account for the corporate income tax already paid. Yet you don't see American dividend investors flocking to Canadian equities do you?
But it's profits and not revenues. It's the government that defines what those profits are with their tax deductions, etc. So I think it's pretty fair.
A big hint is up North in Canada where the corporate tax rate is lower: corporations aren't magically more profitable. Canadian dividend recipients even get a 50% deduction on dividend income to account for the corporate income tax already paid. Yet you don't see American dividend investors flocking to Canadian equities do you?