Is there room for more corporation tax when wages comprise a bit over 60% of GDP and profits a smaller part at around 8% in the USA, but disproportionately the rates of tax on them is widely different, with labour bearing a far larger part, as is apparent.
The reasonable question to ask is why is that? And is that fair?
It would seem that the race to the bottom in corporation tax has resulted in a fundamental shift in tax burdens from companies onto individuals. Tax After Coronavirus (TACs) has to tackle this issue.
Companies don;t pay tax. As the Mirrlees Review points out:
Corporations provide a convenient contractual arrangement that allows
groups of individuals to own assets through a separate legal entity offering
the benefit of limited liability. However, neither separate legal identity nor
limited liability provides a rationale for a tax on company profits, since the
terms and conditions under which creditors are willing to lend to companies
will adjust to reflect this legal protection.
Perhaps the most important point to keep in mind when considering
company taxation is that it is not meaningful to think about the effects of
taxes on companies separately from the effects of those taxes on the
individuals associated with companies.
Even Snippa’s question, let alone his answer, isn’t meaningful.