Abolish Corporate Income Tax

Posted: 8/5/2014; Updated 8/9/2014

Trigger

Just read “Why corporations shouldn't pay any taxes — zero, zilch, nada It's time to stop feigning surprise and outrage when corporations relocate abroad. They're just logically and legally fleeing an aggressively confiscatory tax code.”

Here is a paper “Abolishing the Corporate Income Tax Could Be Good for Everyone ”on this subject by Laurence Kotlikoff published on 8/5/2014.

Corporate Income Tax Does Not Make Any Sense

Every serious economist with the exception of hilarious Nobel laureates and economists like Paul Krugman knows that corporate income taxes are paid by customers or employees not by the corporation (technically called tax incidence).

Thus, only revenue greedy governments came up with the idea of taxing corporations separately!

In a well designed income tax system only the owners of corporations should be taxed for the distributions they receive. In the U.S. this would also finally eliminate some of the double taxation affecting profits distributed by corporations! E.g. post-war Germany has many decades ago come up with a complicated system of Koerperschaftssteuer (KSt) to eliminate this kind of double taxation, but at the price of high complexity and lots of work for tax advisors.