Re:G7: Rich nations back deal to tax multinationals
by simondotau on Saturday June 05, 2021 @11:40AM
(#27405942)
Your 9 and 10 aren’t captured by corporate tax either, because spending money reduces profit.
But your 9 and 10 are captured by the income tax of the people tasked with executing these operations.
10. Astroturfing
As different sectors of business have different structures of material costs, labor costs, profit and investing. Maybe having at least some kind of equal corporate tax can be seen as being fair across different types of businesses.
Additionally many forms of business have externalities which are negative for the rest of the humanity. Often it has been the public sector which has to pick up the slack or clean up the mess.
Also most people agree that there exist at least some forms of infrastructure which are best managed publicly and are difficult organize privately in a way that encourages competition. Also corporations often directly benefit from different forms of public infrastructure, so in this sense it can be seen as fair to directly tax them.