I had a column yesterday at the Washington Examiner that explains, again, why we should drastically cut or, even better, completely eliminate the corporate income tax. See here.
Americans businesses were turned into April Fools on Sunday when a cut in Japan’s top corporate income tax rate left the United States with the highest such rate in the developed world — including Communist China’s. With Great Britain also slicing rates this month from 26 percent to 24 percent, the U.S. average top rate (federal and state combined) of 39.2 percent stands as a tremendous barrier to economic growth, higher incomes and job creation. …
[A] zero rate would help keep consumer prices down, boost retiree and union pension funds and eliminate most businesses’ tax compliance costs, freeing business accountants to concentrate on efficiencies rather than tax avoidance. It would also discourage debt financing in favor of safer equity financing and produce multitudinous growth effects.
Among numerous other benefits, one bears particular emphasis. Half the lobbying in Washington is aimed not at securing pork or contracts, but at finagling special corporate tax treatment. Eliminate the tax, and we eliminate that lobbying — and the incentives for graft that go with it. The repeal of corporate taxes would serve as a sort of backdoor ethics reform…..
Hope y’all enjoy the whole thing.