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.
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 because 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?