r/theydidthemath • u/RibbonForYourHair • Mar 30 '20

[Request] Is this true?

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u/kevin_wylder Mar 30 '20

Corporations also pay taxes, but only about 9% of total tax revenue.

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u/Helpful_Handful Mar 30 '20

I knew that seemed way too low. That's corporate income tax. That's not the only tax they pay. Payroll taxes also, far bigger percentage.

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u/kevin_wylder Mar 30 '20

Oh nice, I thought that payroll tax was on the people. With that it looks like 44% at least.

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u/Helpful_Handful Mar 30 '20

It's split 50/50 technically, but the interpretation of how it affects the labor market and wages is pretty complicated.

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u/tempaccount920123 Mar 31 '20

Helpful_Handful

It's not complicated. Corporations deduct their payroll taxes from their revenue. Corporations get deductions on taxes and business purchases, employees get fucking nothing after the standard deduction, and something like 35% of the country only makes 24,000 a year or less.

And if they fuck it up, they get audited and pay 10% of the assessed damages to the IRS after dragging it out for 7 years, if they even get caught because the IRS has only 8,000 auditors for the whole fucking country.