The primary reason the corporate income tax should be repealed is that its an
“anchor” on the economy. It makes businesses less competitive, lowers worker's
wages and increases the cost of products and services weakening consumers'
buying power.
“anchor” on the economy. It makes businesses less competitive, lowers worker's
wages and increases the cost of products and services weakening consumers'
buying power.
Even the government does not get full value of revenue the corporate tax brings
in due to the corrosion of equitable taxation due to special interests' influence.
Abolishing it will move us closer to what we deserve, an honest tax system to fund
govt., without favors to powerful interests at the expense of individual taxpayers.
This is what repealing the corporate income tax will do:
Abolishing it will move us closer to what we deserve, an honest tax system to fund
govt., without favors to powerful interests at the expense of individual taxpayers.
This is what repealing the corporate income tax will do:
1. US Treasury revenue will drop by $340 billion, 11% of total received annually.
This amount will be recovered if Congress would pass a responsible budget eliminating
duplicate payments from several agencies and its usual whipping target, "waste,
fraud and abuse".
This amount will be recovered if Congress would pass a responsible budget eliminating
duplicate payments from several agencies and its usual whipping target, "waste,
fraud and abuse".
2. Businesses get corporate tax and IRS compliance savings.
This shifts money on companies' balance sheets from an expense to an asset
and also saves the $20-30 billion cost of compliance businesses must bare, bringing
total amount available to almost $400 billion that can be used to expand, invest
in new facilities, equipment and hire more employees.
This money provides a much needed shot in arm to state economies, especially
those still mired since the recession ended.
Struggling companies having difficulty meeting their payrolls or even staying
in business will gain company saving tax relief.
Finally, corporate tax repeal would eliminate applicable federal regulations
saving businesses some of the $100 billion spent annually to comply.
This shifts money on companies' balance sheets from an expense to an asset
and also saves the $20-30 billion cost of compliance businesses must bare, bringing
total amount available to almost $400 billion that can be used to expand, invest
in new facilities, equipment and hire more employees.
This money provides a much needed shot in arm to state economies, especially
those still mired since the recession ended.
Struggling companies having difficulty meeting their payrolls or even staying
in business will gain company saving tax relief.
Finally, corporate tax repeal would eliminate applicable federal regulations
saving businesses some of the $100 billion spent annually to comply.
3. $2 trillion deposited in foreign banks to avoid US taxes "repatriated".
This infusion of repatriated money will be an enormous one time windfall to
be used for major investments many companies would not otherwise afford.
This infusion of repatriated money will be an enormous one time windfall to
be used for major investments many companies would not otherwise afford.
4. End of subsidies to businesses.
Projected $340 billion 'lose' to the treasury would be offset by 'gain' if Congress
ends many subsidies paid out each year to businesses. Between 2008 and 2010,
$222 billion was paid out with more than half going to wealthiest 25 companies.
On average the treasury would save $110 billion annually.
Projected $340 billion 'lose' to the treasury would be offset by 'gain' if Congress
ends many subsidies paid out each year to businesses. Between 2008 and 2010,
$222 billion was paid out with more than half going to wealthiest 25 companies.
On average the treasury would save $110 billion annually.
5. Increase in foreign investments in the United States.
Repeal of the corporate tax will also bring foreign investments here and create an
'immigration' all Americans would welcome, international companies establishing
local headquarters without a US tax burden, bringing job growth with them.
Repeal of the corporate tax will also bring foreign investments here and create an
'immigration' all Americans would welcome, international companies establishing
local headquarters without a US tax burden, bringing job growth with them.
6. Tax code simplification with better auditing recovers billions lost to tax evasion.
The repeal of the corporate tax would benefit the IRS directly, simplifying the tax
code and redirect its auditing resources from administering business compliance to
capturing billions lost on tax evasion. Redirecting its enormous staff of corporate
auditors to individual tax auditing where billions of revenue is lost due to tax evasion,
a fact rarely reported.
The IRS currently assigns most auditors to oversee corporate revenue stream of
10%, not the larger provider of revenue, individual taxpayers who pay 60%, where
most of the evaded taxes can be found, estimated at over $300 billion annually.
The repeal of the corporate tax would benefit the IRS directly, simplifying the tax
code and redirect its auditing resources from administering business compliance to
capturing billions lost on tax evasion. Redirecting its enormous staff of corporate
auditors to individual tax auditing where billions of revenue is lost due to tax evasion,
a fact rarely reported.
The IRS currently assigns most auditors to oversee corporate revenue stream of
10%, not the larger provider of revenue, individual taxpayers who pay 60%, where
most of the evaded taxes can be found, estimated at over $300 billion annually.
7. Non-profit 'industry' would be transformed.
Non-profits, created to provide tax relief for IRS approved worthy endeavors, morphed
into multi-million dollar enterprises using their tax exempt status to run businesses
and influence legislation, beyond any boundaries of "worthy endeavors", including
filling their coffers.
A "ripple effect" would be transformation of the non-profit 'industry' with its two
million qualified organizations. Without the corporate income tax non-profits lose
the primary appeal, a reason most major non-profits have offices in Washington,
to lobby politicians.
Congress should also consider eliminating tax credits it provides non-profits.
Non-profits, created to provide tax relief for IRS approved worthy endeavors, morphed
into multi-million dollar enterprises using their tax exempt status to run businesses
and influence legislation, beyond any boundaries of "worthy endeavors", including
filling their coffers.
A "ripple effect" would be transformation of the non-profit 'industry' with its two
million qualified organizations. Without the corporate income tax non-profits lose
the primary appeal, a reason most major non-profits have offices in Washington,
to lobby politicians.
Congress should also consider eliminating tax credits it provides non-profits.
8. Reduction in Congressional oversight.
Congress workload is reduced by no longer needing oversight on corporate taxation
and the pressure by those 'politicking' that drives donations that drives decisions.
Congress workload is reduced by no longer needing oversight on corporate taxation
and the pressure by those 'politicking' that drives donations that drives decisions.
9. Businesses would be more prudent spending their money.
There will be little need for businesses to spend in order to get tax deductions. Such
decisions will be made on the merits of investing, not IRS allowances.
There will be little need for businesses to spend in order to get tax deductions. Such
decisions will be made on the merits of investing, not IRS allowances.
In summation, some may not think eliminating the corporate tax is enough to stimulate
the economy, but this single tax has greater implications than any suggestions I'm
aware of such as modifying tax rates, ending taxes on low income earners, or raising
taxes on the rich.
the economy, but this single tax has greater implications than any suggestions I'm
aware of such as modifying tax rates, ending taxes on low income earners, or raising
taxes on the rich.
Lastly, one thing tax experts fail to factor is that any changes to the tax code releases the
power of human behavior. Ending the corporate tax will demonstrate how powerful it is.
Its long been said corporations don't pay taxes, people do, in added costs on products
and services. If this is true than businesses never really pay taxes, their customers do.
Please add feedback in comments section below, or email ajbruno14@gmail.com "Point of View" blog http://ajbruno14.blogspot.com/
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