Timmy elsewhere

At the ASI.

We don\’t want to equalise capital gains tax and income tax until we abolish corporation tax.

Yes, I know, incidence of corporation tax. But all the lefties say that\’s on the shareholders, don\’t they?

One comment on “Timmy elsewhere

  1. Corporation tax falls on corporations (unsurprisingly), not on the shareholders. Shareholders pay income tax on their dividends (on which, incidently, National Insurance contributions are not paid)

    A corporation is separate from its owners and its managers. It has its own independent existence which survives the death of its owners and/or its managers. It is because of this separate legal existence that a corporation is a taxable unit.

    It is not mandatory for firms to trade through a corporation. Firms are free to adopt alternative trading vehicles. Many firms trade successfully as sole traders or partnerships. The existence of corporations indicates that advantages accrue to trading through such a vehicle.

    In economics, there is no such thing as a free lunch. The price of incorporation is corporation tax.

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