If Corporations are People...
Saturday, April 14, 2012 at 4:11PM After a spell of travel-induced inactivity, I return with some more half-baked musings loosely inspired by Nicholas Shaxson's Treasure Islands.
If corporations are people, then shouldn't they pay the same taxes as everyone else? Why should corporate tax rates generally be lower than personal income tax (the US is an exception here, though exemptions and loopholes mean that many companies pay far less than the 35% rate)? If corporations are people, then why can they relocate from one jurisdiction with relative ease, without having to go through immigration and naturalization? Why, for that matter, can they split themselves into pieces and be in several countries at once? I certainly can't do that. If corporations are people, then why can they live forever? And why shouldn't they be beholden to those who brought them into being (viz., the government—"The state is the only institution in the world that can bring a corporation to life. It alone grants corporations their essential rights, such as legal personhood and limited liability....Without the state, the corporation is nothing. Literally nothing."—Joel Bakan, The Corporation)? My parents had enormous authority over me through my first eighteen years, but corporations, we are told, should be free from regulation by the legal regime that brought them into being.
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