As someone who ran his own business for over eight years paying close to 30% tax (and is soon going to do it again), I have very mixed feelings about companies using tricks to reduce their tax burden. I mean, I like it when I do it, and I feel justified because there isn't that much that I can claim tax relief from, but seeing a big company paying such low tax rate feels wrong (even though it may be completely legal).
Having said that, there is something to be said of all the tax that is indirectly being generated by Meta: they pay high salaries, and the people receiving those high salaries will pay a significant amount of income tax. Same for all the dividends that they pay out. Maybe just being a big money-mover is their excuse?
> Having said that, there is something to be said of all the tax that is indirectly being generated by Meta: they pay high salaries, and the people receiving those high salaries will pay a significant amount of income tax.
So a few people at the top who have more money than Lucifer himself keep getting richer until they are richer than God, and the people at the bottom take on the burden. How is that a fair or good system?
Here’s a better one: Raise taxes on large corporations and obscenely rich individuals and lower them for the people on the bottom. Then Meta can pay lower salaries, but the people getting them will still be able to keep as much or more as before. Meanwhile Meta gets less money to spend around destroying democracy, and tax revenue increases for the government who can spend them to better the lives of every citizen.
Wouldn’t that be preferable?
Let’s ignore for a moment the current bonkers situation in the US, where more tax revenue would only mean more money to be stolen from the people to enrich one guy and his circle of close friends. Hey, like Meta is doing!
Big corporations don't pay taxes the same way as regular folks' businesses. Here in the UK the tax rates are _negotiated_ for the big guys. The system is entirely opaque and invites corruption.
The issue that that taxes fundamentally bind two moralities: and individual and social one.
Societies generally thrive better when there is a certain level of equality. Not a hundred percent, but enough for social mobility and for people to be aspirational.
No or low taxes remove that opportunity. It bears people from taking an education and forces them in poverty.
21% has been the highest possible corporate tax rate since 2017. It's not really fair to compare what Meta pays now to what you paid under an entirely different tax regime. You would also pay less in taxes running your business today than you did previously.
Most small businesses are pass through entities in the United States and pay no corporate taxes at all so it's certainly not the case that "The game is heavily rigged to favor large companies."
"Why don't most people simply create billion-dollar companies so they can also benefit from tax benefits you can only capture at scale? As long as we make it easy to create billion-dollar companies this should work."
Having said that, there is something to be said of all the tax that is indirectly being generated by Meta: they pay high salaries, and the people receiving those high salaries will pay a significant amount of income tax. Same for all the dividends that they pay out. Maybe just being a big money-mover is their excuse?