💾 Archived View for josias.dev › gemlog › re-corporate-growth.gmi captured on 2024-08-18 at 17:21:45. Gemini links have been rewritten to link to archived content

-=-=-=-=-=-=-

Re: Why Do Corporations Have To Grow?

I've read several of the responses to ew0k's post about corporate growth, and I'd like to add something I haven't seen anyone else mention yet: income taxes.

ew0k's original post: Why Do Corporations Have to Grow?

As far as I understand (at least in the United States) revenue that is put back into a business is seen as a business expense rather than income, and thus isn't taxed. This incentivizes growing because most businesses would rather use money for their own business than to pay taxes on it. I'm not sure how this tangibly affects growth, but it could be a factor.

If you can put money back into your business that would otherwise be taken, wouldn't you?

There are subtle things like this in tax law and in the way markets operate that make growing simply more reasonable than being stagnant.