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highwaystar101 on 08 September 2009
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HappySqurriel said:
highwaystar101 said:
HappySqurriel said:

Who would have thought that corporations full of highly intelligent and successful people wouldn't be dumb enough to operate in high tax areas simply because some people believe it is a corporation's duty to provide everyone with welfare?

Just using it at a conversation point really.

Also, I too believe it's not a corporations duty to provide everyone with welfare, however some corporations exploit the system in a grossly unfair way. An average business in Sweden will pay 26.3% corporation tax, Ikea pay only 3.5%, a bit of a better balance is required here don't you think? It's a bit like a progressive taxation system that is operating the wrong way round.

I personally believe in a simple and straight-forward flat tax system for both individuals and corporations at a rate (somewhere) between 15% and 25% of total income (with the possibility of a smal, say $5,000, deduction for basic living expenses per person) where the government is forced to run a balanced budget.

If there are no "Special Incentives" to produce certain behaviours from individuals or corporations then there are no tax-loopholes to exploit.


I agree in theory, a flat tax system will work much better in this situation. Around 17% would be acceptable, it would be low enough to keep the larger business from fleeing to tax havens and it would alleviate some of the financial hardships that smaller businesses face. This could result in a less regressive tax system.
Personally, I would opt for a very mild progressive tax system ranging from 16% for smaller businesses to 19% for the massive corporations. Mostly because I think 19% tax wouldn't be enough incentive for a large corporation to move their operations to a tax haven and 16% would further go to help small businesses flourish. But I think our basic idea for a closer balance is similar.

But country for country of course this would vary depending on the size of businesses.