Slow News Day

Webcomic Storyline: 

Comic Transcript: 

JIM WASHINGTON: The industry reacts in shock today as Ubersoft petitions the court to allow it to bring criminal assault charges against an organization whose only "crime" is to organize a boycott.

JIM WASHINGTON: The organization claims its actions are a legitimate form of protest. Ubersoft claims that since corporations are people, the organization's attacks should be prosecuted accordingly.

JIM WASHINGTON: Here to help us understand exactly what is going on is our industry expert.

INDUSTRY EXPERT: I have ABSOLUTELY NO IDEA.

NEWS TICKERTAPE: Breaking: Stocks rise sharply on reports that stocks will rise sharply :: Stocks dip on rumors that stocks are about to drop in value

Comments

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The breaking news is as good

The breaking news is as good an explanation for the stock market as I have ever seen.

My opinion on the

My opinion on the "corporations are people, too" subject is if corporations want to be people, then let them pay taxes like people, on gross receipts, not net profit.

That's how corporations are

That's how corporations are taxed in Japan.

If corporations paid taxes on gross receipts, they would all have to merge into super-giant corporations, because super-giant corporations would then be able to avoid taxes by transferring good between branches without payment.

For instance, one auto company would buy up all of its suppliers, so that they wouldn't have to pay taxes on steel, rubber, wheels, rims, whatever. Then all the other auto companies would have to do the same, to keep their prices as low.

Eventually you'd have monster corporations, each owning hundreds of what we would consider giant corporations. These monster corporations would have so much political power that they would basically run the country.

Just like in Japan.

Oops. Japan does tax

Oops. Japan does tax corporations on net receipts. The keiretsu system began hundreds of years before the current tax system was created anyways, so I couldn't use it as an example even if it were true.

(Some assets can be transferred between 100% owned subsidiaries without paying tax on them in Japan. Theoretically, I think that doesn't provide a tax advantage to monster corporations. In practice, it probably does.)