[roadbuster]

> Payroll taxes are inefficient

I agree, but governments intentionally shifted from corporate taxes (taxes on net, corporate income) to payroll taxes (taxes proportional to employee wages) because businesses were either finding creatives ways of deferring/diverting income, or they just weren't taking profit (and, thus, nothing to tax).

See the third graph here (yellow line vs. dark blue line) https://taxpolicycenter.org/briefing-book/what-are-sources-r...

[Saline9515]

Corporate taxes are inefficient as well as they discourage reinvestment by the company, since the State taxes a rake each year. Taxing on dividends paid (and buybacks) is better, even if it leads to higher prices to compensate for the lower capital profitability for shareholders (who compete with bonds).