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subchapter S (and other pass through) corporations pay no corporate income tax at all. this is the majority of small businesses.

Corporations ultimately distribute their profits to actual people. Those people will pay tax on that income.

It isnt automatically obvious that corporations should pay any taxes on income (or revenue) until it is distributed to actual people (shareholders and employees). We tax the profit of larger corporations because we can and because we need the tax dollars, not because there is some moral imperative to do it.




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