Should Worker Co-Ops pay taxes?
An important element of any economics discussion, taxes usually get a bad rap. In general terms, a person's stance on whether or not the members of a society should pay more or less taxes will depend on their ideology. One recurring (and important) issue is the amount of taxes paid by enterprises. When this discussion comes up, we usually think of BIG corporations like Apple, who was found to have received illegal tax benefits.
But what about cooperatives? Considering the social benefits that a cooperative form of enterprise provides, should it be held liable to pay taxes? Some experts believe that farmer cooperatives provide a much needed stability to the food market and should in fact be exempt from paying taxes. As another example, in Puerto Rico, cooperatives are exempt from paying any taxes except sales tax.
Currently federal law requires worker cooperatives to pay taxes, although some tax benefits do exist. So what do you think? Should cooperatives pay taxes?