What's the big deal with companies not paying taxes
I have never understood why so many people are upset about companies not paying income taxes. Companies are not people! it is a bit like complaining that my horse, which does a lot of work in my farm (and gets paid with food, shelter and medical care) doesn’t pay income taxes either. A company is simply a business structure, a tool, an investment vehicle.
When companies make a profit, they reinvest it or pay dividends. Reinvesting is good because hopefully it creates more jobs and more economic activity. Shareholders who receive dividends are, at the very end of the ownership chain, people, who then have to pay income tax on those dividends anyway. Taxes are paid, just further down the chain.
I’m aware that some employees get companies to pay for their personal expenses (which seems unfair) but companies are then hit with Fringe Benefits Taxes, which are usually higher than income taxes anyway.
Could someone please tell me what part of the puzzle I’m missing?
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