> Or you just scrap corporate tax entirely because it’s a terrible idea anyway.
If you scrap corporate tax would rich people hold all their wealth in corporations so as not to pay any personal income tax?
If you scrap corporate tax would rich people hold all their wealth in corporations so as not to pay any personal income tax?
As long as creating a legal fiction is a mere matter of having someone else do paperwork, you either need to extract tax from legal fictions, or kiss a big chunk of taxable activity goodbye.
The two main tax avoidance strategies would be people running and retiring overseas just before selling, or never selling and waiting for the cost basis to be reset upon their death.
Spending would turn into various non-monetary and indirect compensations. It is going already but would get even more efficient.
So please order that custom yacht now, all you HN unicorns.
It only redistributes work toward what rich people want.
Investing into something actually useful would be much better.
Scenario A: yacht is bought - economy is redirected toward luxurious yacht building, people get paid to work on building a yacht
Scenario B: investment into housing - economy is redirected toward house building, people get paid to build houses
scenario A can be a good one only when this people would be unemployed and seeking a work otherwise. Or if you think that building luxurious yachts is more important than alternatives.
What a catastrophic idea. Do you want economy tuned to the tastes of the vain, wasteful, and capricious? In such economy there is no car, real estate, mobile phone, or clothes for you.