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Findings indicate tax semi-elasticities of The corporate income tax is under attack. Nation states are scrambling to offer multinational corporations an ever growing feast of lower taxes, loopholes and incentives.

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Lobbyists and politicians constantly try to persuade us that the corporate tax is a bad, inefficient, unreasonable tax. Yet it is one of the most precious of all our taxes.

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One of our ten points concerns revenue. This is nearly half of all OECD public health spending and around double the amount spent earn fast 20 public tertiary education, one of effective earnings in the network fundamental underpinnings of corporate profits.

And yet the corporate tax is disappearing fast.

Gross income is the total amount you earn and net income is your actual business profit after expenses and allowable deductions are taken out. However, because gross income is used to calculate net income, these terms are easy to confuse.

Average headline tax rates are around half what they were inand on current trends will reach zero in the next two or three decades. We may not even have this much time, given the influence of the large accountancy firms and corporate lobbyists actively working to hasten its demise. Since the s multinational corporate profits have soared but the constant attacks on the corporate tax mean nation states are capturing a dwindling share of this bonanza.

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The result is greater inequality, higher taxes for poorer sections of society, distorted markets, and rising fears of plutocracy. The attached documents outlines ten reasons why it is essential to defend the corporate income tax.

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In summary, these are: Corporate income taxes raise essential revenue for schools, hospitals and the rule of law. Less well understood is the fact that the corporate tax helps hold the whole tax system together: without it, people will stash their money in zero-tax corporate structures and defer or even escape tax entirely.

The corporate income tax curbs inequality and protects democracy. The tax charge falls largely on the wealthy owners of capital: without it, corporations and their wealthy owners free-ride off the public services paid for by others.

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Corporate taxes enhance national welfare. Corporate tax cuts, incentives and loopholes ricochet around the world.

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The corporate income tax is particularly important for developing countries, which rely more heavily on it than rich countries do. Corporate taxes can rebalance economies.

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Corporations around the world are hoarding cash, not investing it. Corporate taxes harness this idle cash and put it to productive uses, via government spending on education, roads and other public services.

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The corporate tax curbs rent-seeking. Because rent-seeking tends to be more profitable than genuine productive activity, the corporate tax falls more heavily on it.

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Corporate taxes spur transparency and more accountable government. To collect the tax, states must put in place good tracking measures.

  • Gross vs Net Income: Definitions and How to Calculate | MBO Partners
  • The Reason Five basic network properties shape their scalability, profitability, and ultimately their sustainability.
  • New Report: Ten Reasons to Defend the Corporate Income Tax. - Tax Justice Network
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In short, the corporate income tax is worth fighting for. Please see the short summary and the full report. On current trends the tax will soon disappear, ushering in an era of unaccountable, untaxed plutocracy and towering inequality in all countries. The result?

Comments • 3

Inequality rises, whole economies are thrown out of balance, and democracy and prosperity suffer. The tertiary share has been stable at ca. He lives in Berlin.

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