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RE: Zero Tax on Small Businesses to Boost the Economy - A Crazy Idea?

in #economics7 years ago

It's very true that startups need more help and we need to make things easier for them but I'm not convinced cutting tax is gonna be all that helpful - you just pay the business tax on your profits anyway so as long as they keep reinvesting all revenue (as they hopefully would) it wouldn't benefit them all that much.

And I could see established companies exploiting it by just doing spin-offs and 'invest' in them to save tax.

But yeah, worth thinking about and I don't have any better ideas...

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Good points - it would certainly need to be examined for loopholes and possible problems with exploitation.