Stuff You Should Know

How Corporate Taxes Work

14 snips
Apr 29, 2021
Corporate taxes are not just about revenue; they're seen as a check on corporate power and a means to fund public infrastructure. The discussion reveals diverse perspectives from economists and highlights the historical complexities of corporate taxation, including tax avoidance strategies like transfer pricing and tax inversions. Notably, the moral implications of these tactics on government funds and economic fairness come into play. The overall impact of corporate taxes on labor, wages, and investments is also examined, making for an insightful look at this critical financial topic.
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INSIGHT

Disagreement on Corporate Taxes

  • Economists disagree on the effectiveness of corporate taxes.
  • Some believe they are essential; others find them harmful.
INSIGHT

Corporate Tax Stats

  • Only 10 out of 195 countries lack corporate income taxes.
  • In 2019, corporate taxes made up 6% of US federal revenue, down from 40% in the 1960s.
INSIGHT

Corporate Tax History

  • Congress gained the power to tax incomes in 1909.
  • Apportionment ensured equal taxation among states regardless of income differences.
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