Re:When the Rich Said No to Getting Richer
by aianus on Tuesday September 05, 2017 @05:25PM
(#15179253)
I thought we were talking under the assumption that the corporate tax rate was the same as the personal tax rate (ie a flat tax).
Keeping it in the company would then be irrelevant (the more you keep in the company by not paying yourself a salary, the higher the corporate taxes).
Re:When the Rich Said No to Getting Richer
by ch4s3 on Tuesday September 05, 2017 @05:40PM
(#15179355)
Not if you have foreign holdings and don't repatriate all of the profits.
I also don't think you could easily manage raising the effective corporate tax rate very much without seeing further offshoring of profits, which is the present situation. We presently live in a world where capital movement has been liberalized and the movement of people(Schengen notwithstanding) has not. So even if you have some sort of profit/income agnostic flat tax, any business that can seek lower tax rates abroad will.
Obviously this is a terribly contrived example, but it is somewhat descriptive of the type of strategy used to reduce taxable income. Things are obviously more complicated when you have numerous types of income from domestic and foreign sources.