CASPer Scenario For Discussion #31

[PrepMatch]

The corporate tax rate allows corporations to be taxed less than individuals get taxed on their personal income. Those against the concept of corporate taxes being lower argue that it propagates class differences between the upper classes (who typically own corporations) and the lower classes. Those in favor of the idea argue that this allows for business development in the economy and so everyone benefits from it at the end of the day.​

1. What is your opinion on this topic?
2. Corporations often allow their shareholders to have limited legal liabilities. Do you think this is ethical?
3. Let's say that you do not agree with a lower tax rate for corporations. Should not-for-profit corporations be taxed lower?

Discuss Below !!

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[deleted1129181]

1) Businesses are different than private citizens. A private citizen uses his incomes for herself/himself only and has a lot to gain from government infrastructure such as schools, roads, police protection, etc. A business uses its profit margin for further development to contribute towards the economy. Furthermore, each member of a business, including executives, are taxed for their personal profits off of the business in regards to selling shares and attaining a salary.

2) Yes, this is ethical because this often also comes with the territory with restricted decision making. Seeing how the majority of investors have limited influence in business operations of organizations they have invested in, combined with the fact that majority of investors cannot realistically know what happens behind closed doors, makes limited legal liabilities ok.

3) I agree there should be a lower tax rate for corporations. It should be even more lower for non-profit organizations because they are designed with intentions to give back to society only, and taxing these organizations can hinder their ability to carry out their mission. Some might argue that many organizations masquerade under a "non-profit" classification, but I would argue that this is a completely separate issue.

 

[fluffycookie1231]

Much love to this company but this question is so strange, I really do not think it will pop up on the Casper.