Disadvantages Of Corporate Tax

WHAT IS CORPORATE TAX RATE?

A levy placed on the profit of a firm, with different rates used for different levels of profits. Corporate taxes are taxes against profits earned by businesses during a given taxable period; they are generally applied to companies ' operating earnings, after expenses such as COGS, SG&A and depreciation have been deducted from revenues.

Corporate taxes are usually levied by all levels of government (i.e., State and Country). Corporate tax rates and laws vary greatly around the world, as different governments and countries view corporate taxation in different ways. For example, those in favor of lower corporate tax rates point to the possibility for greater economic production if companies are taxed less. While others

Because corporations are legal entities separate from their owners, they may be taxed as ifthey were persons. A corporate tax, then, is the equivalent of the income tax for natural persons. Corporate taxes vary from country tocountry; in the United States, they are levied at both the federal and state levels. Proponents of the corporate tax argue it guardsagainst excessive profits that may result from unethical or illegal corporate practices, while opponents say that corporations simplypass on the tax to their customers.

Corporate tax is imposed in the United States at the federal, most state, and some local levels on the income of entities treated for tax purposes as corporations. Federal tax rates on corporate taxable income vary from 15% to 39%. State and local taxes and rules vary by jurisdiction, though many are based on federal concepts and definitions.

WHY DO WE NEED CORPORATE TAX

statutory corporate salary assessment rate is for the most part higher than the expense rate in other propelled nations (those in the Organization for Economic Cooperation and Development), the powerful duty rate is about the same as in other OECD nations (Gravelle 2012). For instance, PricewaterhouseCoopers (2011) assessed that the U.S. successful corporate expense rate, found the middle value of more than 2006 to 2009, was 27.7 percent, while the normal compelling assessment rate for 21 OECD nations was 23.5 percent.2 This OECD normal, in any case, gives equivalent weight to the duty rates of all nations, expansive and little. In the event that the duty rates are weighted by GDP, the normal powerful assessment rate was 27.2 percent over the 2006–2009