Corporate Tax

U.S. federal and state governments have imposed one of the world’s highest corporate tax rates. High tax and strict regulations are often too costly for small- and medium-sized businesses, and many corporations merge to reduce costs and make management more efficient. But this results in a greater concentration of power and wealth among the few. The largest corporations end up avoiding paying corporate taxes altogether by taking advantage of loopholes.  Should small and medium-size corporations be given corporate tax breaks to try to curtail the growing economic disparity that high corporate tax rates indirectly create? Or is there a different solution?  Left-wing politicians are always promising to go after big corporations and get them to pay more taxes, but that never seems to happen because they will not bite the hand that feeds them.

Employee-owned and -run corporations (co-ops) are designed to self-regulate, since the owners are also workers, and they tend to distribute power and capital gains among all the employees of the corporation. Co-ops tend to act more responsibly with their local environment as the worker-owners are also local residents. Should Co-ops be exempted from corporate tax? What effect would this have overall on the business economy?


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