I’m absolutely amazed that no politician is calling for the complete repeal of corporate taxes.
This should be a no brainer.
The corporate tax brings in very little revenue (look at the source of revenue chart on our home page. Corporations provide a very small portion of that revenue.). Primarily because corporations have lobbied for and won tax breaks. The corporate tax feed cronyism!
Whatever tax burden is placed on corporations is simply passed on to their consumers in higher prices. It has zero effect on their profits, but it does make our corporations less competitive in the world market.
If we removed the corporate tax we would find out the true cost of products and with a truly free market the product cost would go down.
Get rid of the corporate tax and eliminate all the tax loopholes.
This single action will result in lower product costs, make manufacturing in the U.S. more attractive and create jobs.
Ultimately all other countries will follow suit reducing the advantage to the U.S., but it will take time. In that time we will have a distinct advantage.
As countries adopt a no tax policy on corporate profits, they will slowly come to realization that taxing earnings is counter productive. The choices will be a value added tax or a consumption tax to generate revenue. Hopefully they will realize that a value added tax is expensive to administer and prone to political whim. This should lead to a more or less standard consumption or sales tax.
A sales tax is, in my mind, the fairest form of taxation. You are taxed on what you spend and not on what you earn. Savings becomes popular again and this provides capital for investment in new ideas, creating more jobs and improving our standard of living.
Now is the time to eliminate the corporate tax.