Do corporations exist simply because they act as stealth tax collectors?

Question

Since corporations really never pay a tax (they simply raise the price of goods and services to maintain their desired level of profitability) then do they not simply act as a tax collection "go between"? As such, is it not the purpose of governements to authenticate a corporate entitiy simply so they can add more taxes on to the population?

vtjames...Good point, albeit semantic. Since corporations simply pass their cost of doing business on to consumers (taxes being one of those costs), then the tax is never "paid" by the corporation. It is, instead, "collected" from the consumer and passed on to the government.

The incentives for forming a coporation (limited liability, etc.) are a result of the cormporate "entity". The "entity" insulates the investor. Governments authenticate this "entity". Their reason for doing so appears to be only because they can increase taxes on the consumer without a resulting backlash.

The incentives for forming a coporation (limited liability, etc.) are a result of the cormporate "entity". The "entity" insulates the investor. Governments authenticate this "entity". Their reason for doing so appears to be only because they can increase taxes on the consumer without a resulting backlash.

The incentives for forming a coporation (limited liability, etc.) are a result of the cormporate "entity". The "entity" insulates the investor. Governments authenticate this "entity". Their reason for doing so appears to be only because they can increase taxes on the consumer without a resulting backlash.

The incentives for forming a coporation (limited liability, etc.) are a result of the corporate "entity". The "entity" insulates the investor. Governments authenticate (allow) this "entity". Their reason for doing so appears to be only because they can increase taxes on the consumer without a resulting backlash.

Sorry about the multiple posts. YA burped.

Answer 1

corporations do act as stealth tax collectors; however

that is not why people start them or invest in them. For the investor, a corporation offers limited liability for the acts and products of the corporation -- which fits nicely with hiring managers to run the thing so you don't have to pay attention to every detail personally.

portfolio diversification would be near impossible without corporations -- you couldn't pay attention to the products of any single large enterprise, much less a number of them.

Answer 2

Corporations exist to address the needs of society so that we can feed, cloth, and build our society.

In my eyes, corporations do not pay taxes since the money they collect is for the price of the goods they sell. The tax for the product is already figured into the price of the product. So when they file their taxes, they are simply taking the money from their bank account and sending it to the government. That money came from the consumer and is considered to be part of the gross profit. However when they figure taxes, it goes on the books as a cost of goods sold. So if you look at a balance sheet, that is where the tax is located.

Answer 3

Corporations do pay tax and who owns corporations??Shareholders and when the profit is turned over to shareholders, they pay more tax. You can hate the evil corporations that provide for the world but at least be honest in your argument.

Answer 4

I’m very liberal and I don’t accept your thesis. Corporations are in business to make money and there is absolutely nothing wrong with that. Aside from unfair monopolies, their profits are not conceptually related to taxation. Competition and retail choices theoretically determine how much money they receive from consumers.

The government’s responsibility is not only to establish corporations as legal entities but also to regulate them so that they don’t run amok and harm the public, their workers, their shareholders and unfairly eliminate their competition.

Answer 5

They exsit bcoz:

1.Its easier to get rich for the owner
2.Tax aviodance (again helps owner get rich, he buys whatever he wants 1st and pays tax with what is left owner, brilliant...u just couldn't make it up..lol)
3. Make money
4.Provide employment
5,6, 7, 8, 9, 10 Make lots of money for the owners/shareholders.

Answer 6

Coporations exist so that groups of people can feed their children.