Question

Would you advocate raising the ceiling so that only the largest corporations, as measured by assets, are taxed?

Answer 1

This has been one of the most controversial topics for decades. Raising the ceiling for tax slabs so that only the rich or in this case largest corporations are taxed is something that has been done by a lot of presidential candidates in the past to serve their agenda and gain popularity.

I, personally would not advocate raising the ceiling so that only the largest corporations, as measured by assets, are taxed. I am of the opinion that such a step not only fails at closing the gap between poor and rich or ensuring equality but completely discourages people to put in their fair share of effort to succeed in life. The largest organisations had also started small in the beginning. It was only through their hard work, strategic decision making and planning that they were able to succeed over such stringent competition and become large organisations.

The large organisations already pay their fair share of the tax liability as in any tax regime for any country, tax rates increase as the tax slabs go up along with additional taxes being imposed such as surcharge etc. A point which may be made by the ones advocating for raising taxes for the rich is that the top earners might not feel the pinch of increase in tax that much, since they already have huge surplus. But in my opinion if this is done, it will be unfair for those who have worked so hard to reach the top level. There are also some facilities which are specifically enjoyed by the lower tax groups such as rebates etc. Also governments provide same facilities to both large and small organisations, there is no distinction. Hence while the tax rates might be kept lower for the lower tax group organisations, it should not be completely removed and their burden should not be shifted to the large organisations.