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Spolu 22: Keep the Taxes Low
Readers of the left-wing persuasion believe taxing the corporate world more would provide more tax revenue. More likely, this move would entice more corporations to use more tax avoidance techniques. For the spolu, higher taxes will kill some of the spirit to distribute more profits.
Rather such readers should be advocates for low taxes for the spolu concept. I recommend 15% to 25% of profits. This rate will provide reasonable cash flow to the government coffers. Tax avoidance techniques will not be sought out. Investors still have the incentive to invest. Spolu employees look forward to annual bonus and will take their employer’s business more seriously. Customers and suppliers will form stronger bonds. Charities will get more money. All this is good for the economy.
If a spolu has a profit of $100,000 and pays $20,000 in taxes, this means that (eventually) the other $80,000 will be moved in the economy to get taxed again. Let’s see: 20% of $80,000 is another $16,000 for the government!
Just let the spolus focus on distributing profits. More tax revenue is possible with a lower tax rate for spolus.
Don’t kill the spirit to distribute profits with higher taxes! Free the profits into the economy!
