Wouldn't it make more sense and be fair if only corporations paid taxes?

Question

Wouldn't it make more sense and be fair if the American people didn't pay any taxes and only corporations paid taxes? Americans would then have the extra money that would have went towards taxes, to spend at Wally World or other places. With the taxtion of only corporations then product prices would increase, but with the extra amount of money American citizens have from no taxes to pay, the product prices would be the equivlent to what we pay now. The difference between our current taxtion and only taxing corporations is that Americans would actually be able to choose where their taxes are spent. Whether it be bread, cereal, etc.. Also, it would prevent potentially exploitable tax cuts that corporations get. Ultimately it prevents corporations exploiting loop holes in the system.

How is this bad from the current way we pay taxes? What are other benefits from this way of taxtion instead of our current way we pay taxes.

"Oh yes definitely, then companies would only not pay people as much - dumbazz"

You mean like right now? So what your saying is corporations want/get tax cuts so they can pay their employees more. Isn't that like adding gasoline to a fire

Please think about what I'm talking about before answering.

"If corporations only paid taxes, too many small businesses would go under. If people did what they should do and saved their extra money that they recieved from not paying taxes, this money would not go to the corporations, thus making your tax idea, not successful."

Not true, there is a huge difference between corporations and small buisnesses. If anything small buisnesses would have a starting chance against the giants and begin to flourish.It would promote small buisnesses instead of the current system that promotes monopolies of dominating sectors in the market.

People would only be able to save as much money as they do now since, the product prices would increase to be equivalent to what we pay now. It would seem like people would have more money, but they wouldn't. The difference is that Americans can choose what their taxes go towards and it prevents corporations from exploiting the system or dipping into the government. Whether it be for tax cuts or bribes etc..

"Actually I own 2 LLC's and they way they are set up, they don't even owe taxes. The income is divided up between me and my business partner and then we pay our portion of taxes on that. The company itself doesn't even actually pay taxes, just we do. Most Corporations are set up this way. So how would it be fair that they have to pay taxes and you don't? Also, how would that be fair for someone who is a sole proprietor of a corporation and they had to pay taxes, whereas, someone who worked for a corporation didn't? Also, business who don't sell items like bread, cereal etc. would still have to pay taxes and wouldn't benefit from the higher product prices.
Bottom line: There isn't a way out of taxes, they are here to stay, sorry."

First, corporations are entities not people. Do not get the two confused. Second, bread and cereal were just basic examples of everyday things people buy. You act as if corporations are taxed then they won't make any profit, which is not true.

Currently, corporations are *supposed* to be taxed, but they bypass this system with tax cuts and write offs. It is a way to cheat the current system. In this other system it would be impossible for them to cheat the system and would almost equate to our current system, except Americans can A) Choose where their taxes go, B) It promotes small buisnesses, C) Prevents exploitation from setting up a monopoly and dominating the market sectors.

Not really. It wouldnt prevent a damn thing. Even if (and this is one hell of a huge "if") the Congress passed this, you can bet your bottom dollar that the nex tax code would somehow profit the corporations. Youre severely underestimating how corrupted the Congress is if you think otherwise. Not to mention that the basic premise of this whole enterprise of yours is unfair towards the corporations. You want to go from a system thats unfair towards the people to one thats unfair towards our businesses? Thats a hell of a smart move, especially with our economy on the verge of collapse.

Ever heard of the Fair Tax? (http://www.Fairtax.org) You should check it out.

It is about the equivalent to the Fair Tax. My question is how does the Fair Tax close loop holes in the system corporations exploit?

Answer 1

Actually I own 2 LLC's and they way they are set up, they don't even owe taxes. The income is divided up between me and my business partner and then we pay our portion of taxes on that. The company itself doesn't even actually pay taxes, just we do. Most Corporations are set up this way. So how would it be fair that they have to pay taxes and you don't? Also, how would that be fair for someone who is a sole proprietor of a corporation and they had to pay taxes, whereas, someone who worked for a corporation didn't? Also, business who don't sell items like bread, cereal etc. would still have to pay taxes and wouldn't benefit from the higher product prices.
Bottom line: There isn't a way out of taxes, they are here to stay, sorry.


What exactly do you think a Corporation is? I run small businesses (LLC's) that are taxed as Corporations, which then the tax liability is passed on to me instead of the Corproation. It is called a Schedule K. I don't know who taught you about Corporations and Taxes, but you have been misinformed. How would my businesses be taxed any differently under your new scheme than the large Corporations when we are classified as the same thing. Also, the American people are also people who own Corporations. Do you mean the working class American? You say American as though people who own Corporations are not American, and they are evil and should be the only ones to pay taxes.

Answer 2

ABSOLUTELY NOT!!!! Your plan will bankrupt American businesses!

You forget that this would only raise prices dramatically since business would have to pass the costs onto the consumer. This would hurt employees, because the business would have to cut back, and consumers due to higher costs.

Businesses are already loaded down with taxes! For example, our small personal service corporation must pay Federal taxes at a 35% rate. Then there's state taxes - even if there is no "profit" we must pay $800 per year for the "priviledge of doing business within the state of California." .

This does not include the payroll taxes paid. We must match the employee portion or social security & medicare. Then there's Fed. & State Unemployment & Employee Training Tax.

Most corporations are small businesses. Businesses are suppose to make a profit. That is why they are in business. Profit is not an evil rotton thing! Without a profit the business must out of business!

I am so sick of UNINFORMED people claiming that businesses don't pay enough and that profits are a bad thing!!!

Answer 3

Not really. It wouldnt prevent a damn thing. Even if (and this is one hell of a huge "if") the Congress passed this, you can bet your bottom dollar that the nex tax code would somehow profit the corporations. Youre severely underestimating how corrupted the Congress is if you think otherwise. Not to mention that the basic premise of this whole enterprise of yours is unfair towards the corporations. You want to go from a system thats unfair towards the people to one thats unfair towards our businesses? Thats a hell of a smart move, especially with our economy on the verge of collapse.

Ever heard of the Fair Tax? (http://www.Fairtax.org) You should check it out.

Answer 4

People use loopholes in the tax system just as much as corporations do. If corporations only paid taxes, too many small businesses would go under. If people did what they should do and saved their extra money that they recieved from not paying taxes, this money would not go to the corporations, thus making your tax idea, not successful.

Answer 5

No it would not make more sense nor would it be fair. It would be nice if they paid thier fair share though, and I cannot see how 10.00 corporate tax (I swear that is what it is in my town)for some corporations is ridiculous. PGE? I pay more than the 10.00 a year in taxes just for my bill alone. Where is all that money going to?

Answer 6

Even if it was workable (keep in mind the numbers - there are far fewer corporations in the U.S. than citizens), how is that fair? Basically, you're saying that despite all of the services the government provides to individuals (defense, roads and other infrastructure, consumer regulations and laws, etc.), only corporations should pay taxes? What about partnerships? Sole proprietors?

Sorry, I don't see it working out.

Answer 7

We should send all our jobs to China where the people get $2.50 an hour for labor and then we bail the company out because some Communist was elected as President then and now! Obama is already guilty of 5 counts of treason and refused to address them or the officer that brought these charges. Bill Clinton also committed treason and was never charged! He gave our missile guidance systems to China. One must wake up. Giving things to the Chinese Government is not supporting the Chinese people! The people know what it is like and it looks like ignorant Americans will soon find out that same reality. The Chinese people are not the Chinese Government. The government there loved Bill Clinton and loves Obama. The people there want Obama dead!!! Earl

Answer 8

All taxes are immoral because they are enforced through the use of force. Fair is a relative term that I don't trust you, my neighbor, or for any reason government and their bureaucracies to dictate. Everyone at this point should be taught and shown the examples from around the world that Socialism, Fascism, Communism or any other form of statism is both immoral, and corrupt, subjugating man to government.

Answer 9

Not really. It'd be a very effective way of getting rid of corporations, though. The number of corporations that would be 'sold' to individuals, partnerships, and the like would be staggering.

Answer 10

Wont happen because the Democrats believe that every one should have to pay taxes.