Question

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Why are corporate taxes lower than individual income taxes?

Present an argument for corporate taxes to be higher or equal to the highest individual income tax rates.

Present an argument for corporate taxes to be lower than the average individual income tax rate?

Answer 1

1: Corporate income is taxed twice, once in the hands of company and then in the hands of the individuals who receive the profits (dividend).Hence the taxes are lower on corporate income.

2: Since corporates are required to be socially responsible and have the onus of corporate social responsibility their tax rate should be highest so that they contribute highest to the society.

3: Since the income of corporates are taxed twice, the tax rate should be lower than the average individual tax rate.