Using graduated rates for corporations isn't used because it doesn't work. The formal entity size is disconnected from the business size.
How many entities is "Google"? Is it one or is Search one company and Android another and YouTube another and so on? If they need to get the size of each unit below some threshold they can just file more LLCs.
Just use the size of the parent company, you say? Okay, which is the parent company, Google or Vanguard? If it's Vanguard then every public company exceeds the largest size threshold. If it isn't, they can use something which is formally an investment fund as the parent company and get as big as they want.
And even if you could do it, you would then create a perverse incentive for the government, because then breaking up those large companies into smaller ones would reduce tax revenue. When you should just break them up to begin with and actually solve the problem.
alt Hacker News
Using graduated rates for corporations isn't used because it doesn't work. The formal entity size is disconnected from the business size.
How many entities is "Google"? Is it one or is Search one company and Android another and YouTube another and so on? If they need to get the size of each unit below some threshold they can just file more LLCs.
Just use the size of the parent company, you say? Okay, which is the parent company, Google or Vanguard? If it's Vanguard then every public company exceeds the largest size threshold. If it isn't, they can use something which is formally an investment fund as the parent company and get as big as they want.
And even if you could do it, you would then create a perverse incentive for the government, because then breaking up those large companies into smaller ones would reduce tax revenue. When you should just break them up to begin with and actually solve the problem.