If Corporations don’t pay taxes, then why are they always clamoring for tax cuts?
If Corporations don’t pay taxes, then why are they always clamoring for tax cuts?
Corporations have to spend a lot of time to transfer the taxes. If some other corporation manages to get a special exemption, and there are many, they lose because they have to pass along the taxes and the other does not. This particularly applies to competition from overseas.
It causes a lot of inefficiency. The corporation still has to do the paperwork and follow all the rules.
The people that the corporation passes the taxes on to are of three classes, customers, owners, and workers. All have good reasons to oppose being taxed, and can provide incentives for the corporation to work to lower those taxes.
Enormous amounts of corporations are owned by middle class people through the 401K and other retirement accounts.
They need to charge more for their products in order to pay those taxes. So if you're a US corporation paying a 35% corporate tax rate who has competitors in Hong Kong, Singapore, or Taiwan, where the corporate rate is only 17%, you would be clamoring for tax cuts too.
People are always lamenting Americans buying cheap foreign imports. Well, our 35% corporate tax rate is one reason foreign imports are cheaper!