Make companies pay taxes before reinvesting
There is a difference in what you can deduct as a company compared to an employee to ensure that you do not have to pay tax. After all, companies can do something very strange that would never be allowed by employees. They can postpone paying the tax for the future by not paying out the profits they have received, but reinvesting them. The system is therefore designed in such a way that the money must remain in a company for as long as possible and there must never be any profit or profit distribution. After all, the latter two are associated with paying taxes – and thus with contributing fairly to society. Have them deduct only the purchase costs, labor costs, and depreciation of investment costs that contributed directly to the relevant revenues. Using this definition, companies have made a lot more profit in the past year and have to pay a lot more corporate tax than they do now. That’s because I deliberately don’t mention two deductions: failed investments from the past and upfront deductions for future business. The abolition of these two corporate deductions will close an important loophole in the tax law and ensure a level playing field between start-ups and growing companies.
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