Are Businesses Taxed Fairly?

Last updated on June 3, 2023

With the corporate tax at 35 percent, U.S. businesses pay more taxes than the businesses in most other countries. It is common knowledge that large multinational companies have the resources to legally evade taxes by holding their profits in foreign countries. At the same time, it must also be remembered that large companies pay millions of dollars in tax money due to the high rate at which they are taxed.

Some believe that the amount of taxes charged is damaging for businesses, especially small businesses. With such a high tax rate, it can be difficult for small businesses to grow, more so at the initial stages. It is believed that the high tax rate promotes tax evasion, as small businesses find it difficult to pay their taxes and yet stay competitive.

When Apple Inc. was found to be retaining their profits made in other countries in those countries to avoid paying taxes in the U.S., it began a debate about who must change: the government or the corporate world. As yet, there has not been a definite solution to this problem.

Whether businesses are the exploiters or the exploited is the question that few can answer. Businesses are a means to achieve growth for owners and workers. They are an important part of our economy, and should be not be overburdened by taxes if possible.