How Companies Avoid Paying Taxes



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It’s a common talking point within the headlines: companies should pay their fair share! The proposed solution to this is to raise taxes on companies and force them to pay whatever politicians define as “fair”. The problem with is is that companies don’t care. They will avoid paying the taxes and they don’t care because it’s impossible to stop them from avoiding paying taxes. The biggest problem within this debate is the people who end up paying the taxes are the people politicians are supposedly protecting: the poor and middle class. As a former engineer, I am all for figuring out solutions to problems; however, in order to figure out the best solutions possible, you need to understand some of the basic functions of how a process works. In this situation, it would be silly to try and solve this tax debate without understanding the basics of how a company works and makes money in the first place. When you begin to understand the foundations of making money within a company, you’ll quickly see why “adding to the cost” of a business is not actually doing too much damage to them. Let’s learn about some basic business and then address this avoidance of how companies behave with taxes.

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