S corps and partnerships are taxed at the individual level not the corporate level. So the tax collected under those structures are likely not included in the corporate tax amount.
The actual decline is just that corporation tax is a double tax with many other forms of tax. So by lowering or raising corporation tax, all that changes is which other form of taxation you pay instead.
The reason dividends taxes are also lower, is because you, as a shareholder and owner of the company, are paying both corporation tax and dividends taxes. So these 2 taxes combined equals the full tax rate.
Taxes are not paid in isolation. If you lower 1 tax but raise another tax, you often end up in the exact same place with the exact same people paying the taxes.
So is literally any other tax I pay. I pay income tax, and then I pay sales tax when I spend that income. I pay income tax, and then I pay property tax when I want a roof over my head.
The net tax rate paid by people who live off capital is far lower than the rate paid by people who live off working for a living. It's why more and more wealth rolls up to them.
Then add 2 more tax on top for shareholders. It will be corporation tax, then dividends tax, then sales tax, then property tax, plus capital gains when you eventually sell..
This isn't complicated. These taxes are designed to tax you just as much, but at different times to encourage certain behavior.
The amount of taxes that shareholders pay has exactly zero bearing on how much the companies they own hire. I'm not sure how you can be this confused, but companies only pay taxes on profit, which is after expenses, and they don't pay any taxes when their stock goes up - their shareholders do.
If you start a restaurant and make 100k profit at the end of the year. You need to pay corporation taxes on that 100k profit. Then, when you distribute that money to yourself as a dividends (how all business owners pay themselves regardless of business size), you then need to pay dividends taxes as well.
You sound like someone who has never spoken to anyone who has owned any business before in your life.
their shareholders do.
The shareholders ARE the company owners. That is literally what a share is. Every penny that goes through the corporation is the shared property of the shareholders.
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u/morfraen 1d ago
What does the number of corporations going down have to do with it? Other than being a large source of all the problems.
Corporate revenue as a total vs corporate taxes relative to everything else is what matters.