Why is a zero percent manufacturing tax bad?
And why can't the government put a tax on pornography.
If they tax cigarettes which are bad for my flesh then surely they shall be concerned with my soul?
Best Answer - Chosen by Voters
Like many (most?) Americans, for some reason you imagine that taxes on businesses are to raise revenue, which is not the case!
A zero percent tax on any particular business activity would serve no purpose....the POINT of corporate taxation is to encourage businesses to engage in certain behaviors that are good for the overall economy....for instance, if you allow companies to deduct the wages they pay to employees from their "bottom line" so that by hiring people they can reduce their Income tax obligation to ZERO, guess what? They HIRE people!
Cigarettes are taxed because they are an easy source of revenue...people will not stop smoking, so it's a fine source of "voluntary" contributions to government...
A tax loophole that allows customers to buy pipe tobacco and make their own cigarettes may have cost New York State $17 million in lost taxes over ...
