I found this image of protesters in Bushwick, a Brooklyn neighborhood, who were raising awareness for the current state of the corporate tax code. The picture is from a website called The Epoch Times in an article called Low Tax Rates for Corporations, Wealthy Protested.
For my “White Paper” I plan on looking at Corporate Taxation in the United States. Corporate taxation is the process of taxing business entities that are classified as a corporation. The United States, with a corporate tax rate of 35%, taxes corporations more than almost every other country. In the United States, corporate taxation has come under fire for being inefficient and detrimental to the growth of business. On the other side of the argument, corporate tax has drawn criticism because of how avoidable it is. Deductions and loopholes results in a much lower tax rate paid by US corporations that is nowhere near 35%
I set up a twitter conversation between Walmart CEO Michael Duke and Costco CEO W. Craig Jelinek. It’s obviously unprofessional, but makes a point about short-termism and Corporate Social Responsibility
Today, I came across a blog post by a professor from the University of Toronto arguing in favor of large corporations as the catalysts for innovation. In his post, he argued that large companies have better access to resources, greater brand strength, more talent, and more support and momentum for promising R&D projects. However, the Sharholders ethic expressed by Milton Friedman, makes me wonder whether big corporations are really suited for things that relatively make smaller profits but really beneficial to the society. If the main purpose of a corporation is to increase the wealth of shareholders, and if the monetary profit is something that they care most, is there really a chance for “socially responsible” projects to compete with projects that has potential for large profit margins? Continue reading →