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All Else Equal: Making Better Decisions

Rerun: Ep6 "Can (and Should) Corporations Be Taxed?" with Larry Summers

Jun 26, 2024
Former Treasury Secretary Larry Summers discusses the complexities of corporate income tax, arguing for its retention as an effective tool to ensure the wealthy pay their fair share. He suggests improvements but advises against abolishing it without a superior alternative. The podcast delves into the burden shift of corporate taxes onto shareholders and examines practical challenges in taxing corporations, including collection from foreign entities. The speakers debate the pros and cons of corporate taxation policies, considering issues like tax avoidance and moral considerations.
27:37

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Taxing corporations is crucial for ensuring the wealthy contribute fairly.
  • Current corporate tax structure promotes debt financing over equity financing, causing economic distortions.

Deep dives

Corporate Income Tax and its Impact on Stakeholders

Corporations pay taxes based on profits, but ultimately individuals bear the brunt of these taxes. Equity holders often bear the corporate income tax burden as reduced profits lead to fewer dividends. However, the impact extends to various stakeholders, such as workers and customers, affecting wages and product prices in the market.

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