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Probably because owners of a corporation are essentially double taxed. The cororation has to pay taxes on their profits, additionally the individual owners have to pay their personal income tax for any of their distribution or pay that they take from the company.
Your question starts with the wrong presumption. Perhaps you are trying to prove what you want to believe other than what is real?
Corporation pay tax at 35% of taxable income. That is essentially higher than almost any individual. (0% of indiividuals pay NO tax, and 40% of them get $$ back through the use of things like working tax credits).
Additionallly, corporations pay income taxes most everywhere, including places that may not have an income tax on individuals. finally, threy pay many, many types of taxes, like ones called asset based taxes, just on their value, whether they make money or not....and of course, they pay things like half the FICA tax cost for their employees.
Moreover, after pating all those, if the corporation makes money, it may distribute it to it's owners. That distribution is taxable as income to those owners.
What else can I help you with?
Why are corporate tax rates higher than individual tax rates?
Corporate tax rates tend to be lower than individual tax rates.
Do I have to pay taxes on my retirement?
Yes, you have to pay taxes on your retirement at a rate determined by your retirement income, which should be much lower than your working income. Yes, you have to pay taxes on your retirement at a rate determined by your retirement income, which should be much lower than your working income.
Can you have a negative corporate tax rate?
Yes, a negative corporate tax rate can occur when a company receives more tax benefits or credits than it owes in taxes, resulting in a net credit. This situation often arises due to significant tax deductions, losses carried forward from previous years, or incentives for research and development. While it is technically possible, a negative tax rate does not mean the company is exempt from taxes; rather, it indicates that it may receive a refund or credit from the government.
What does tax efficient mean?
A financial process is said to be tax efficient if it is taxed at a lower rate than an alternative financial process that achieves the same end.
For a bond issue that sells for more than its face value the market rate of interest is?
This will be a lower amount than what is on the band. You would need to pursue the investment in order to receive the full amount of interest.
Personal loans should have a lower interest rate than student loans.?
Personal loans should have a lower interest rate than student loans.
Why is the interest rate on a convertible bond often lower than that on other types of corporate bonds?
The interest rate on a convertible bond is often lower than that on other types of corporate bonds because convertible bonds offer additional value through the option to convert into equity shares of the issuing company. This potential for capital appreciation makes them more attractive to investors, allowing issuers to offer lower yields. Additionally, the hybrid nature of convertible bonds reduces their risk profile, further justifying the lower interest rates compared to traditional corporate bonds.
Why are corporate tax rates higher than individual tax rates?
Corporate tax rates tend to be lower than individual tax rates.
Which country has the highes corporate tax rate?
The country said to have the highest corporate tax rate is the United States. Canada, Italy, Japan, and Belgium also have higher corporate tax rates than other countries.
Why does the frog heart have lower heart rate than mammalian heart?
Frog's internal body temperature is lower than that of a mammal lower temperature = slower heart rate
What is difference between bar rate and rack rate?
The bar rate is the discounted rate offered by hotels to travel agents and corporate clients, typically lower than the standard pricing. In contrast, the rack rate is the hotel's published or maximum price for a room, usually not subject to discounts. Essentially, the bar rate is a negotiated rate, while the rack rate serves as the baseline for pricing.
Why are corporate bond interest rates higher than government bond interest rate?
Corporate Bonds are usually consider high risk.
Will the bond proceeds always be less than the face amount of the bonds when the contract rate is greater than the market rate of interest?
Yes, when the contract rate is lower than the market rate you have to take less money for people to be willing to accept the lower rate.
Can sport lower your pulse rate?
While actually exercising will cause your pulse rate to increase, when you are fitter your resting rate will be lower than before.
Is the Massachusetts mortgage rate currently higher or lower than average?
The national mortgage rate is currently at 4.02%. The Massachusetts mortgage rate is currently lower than the national mortgage rate by 5 basis points.
Is Spain crime rate lower than US?
As Spain is much smaller in area and population than the USA, I would expect the crime rate to be lower for Spain.
What happens to the population size if the birth rate is lower than the death rate?
qualitative
