Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - 3 Mindbending Ways Apple Dodged $13.8B In Taxes

mrkajz44 · 05-21-2013, 05:36 PM

I'd say the main reason there is not a 0% corporate tax is this would allow for indefinite tax deferral if the money is never taken out of the company. So if a company reinvests 80% of its profits every year and pays out 20% in dividends, only 20% of the company's profits will ever be taxed. The 80% could be deferred forever*

*Well, maybe not forever, but a long, long time

05-21-2013, 05:36 PM	#34
mrkajz44 First Line Centre Join Date: Oct 2010 Location: Deep South Exp:	I'd say the main reason there is not a 0% corporate tax is this would allow for indefinite tax deferral if the money is never taken out of the company. So if a company reinvests 80% of its profits every year and pays out 20% in dividends, only 20% of the company's profits will ever be taxed. The 80% could be deferred forever* *Well, maybe not forever, but a long, long time __________________ Much like a sports ticker, you may feel obligated to read this