One thing I have learned perusing the web for information is that govt.
approaches complex issues much differently than the private sector does.
In researching approaches to tax reform found govt. begins by identifying
prohibitive factors and a negative approach that allows fear rather then
potential to drive any attempt to reform.
Congress and bureaucrats looks at projected, non-quantitative barriers
rather than unshackle opportunities that drives economic growth.
The first thing the public needs to know is how much less revenue repealing
the corporate income tax will 'cost' the treasury? In 2015 $340 billion, or 10%
of the total revenue, was sent to Washington.
Retaining this money shifts it on balance sheets from an expense to an asset.
The repeal also eliminates the cost of compliance, $20-30 billion the business
must bare, bringing the amount available to almost $400 billion, money
remaining "within the states" directly stimulating their economies.
Lastly, an issue never resolved, how can $2 trillion of untaxed foreign
earnings of US companies sitting in overseas accounts be 'repatriated', so
businesses could be invested here rather than remain parked in foreign banks.
This infusion of money will enable businesses to expand, invest in new facilities,
equipment and hire more employees. It especially helps struggling companies
that at times have difficulty staying in business or meeting their payrolls.
This benefit dwarfs the $340 billion 'lose' some politicians fear, so do nothing.
But, there is more. Prices on products and services will be driven down as
business costs are lowered, increasing in consumer buying power, even on
major expenses such as housing and health care, the two fastest rising costs!
This surge would be a much needed shot in arm for states, especially those
whose economies still remain mired since the recession ended.
Repeal of our corporate tax would also benefit foreign businesses that may
invest more in American market due to our high corporate tax rate. Without
a corporate income tax they will have the same benefits domestic companies
receive.
Another windfall to the govt. would be eliminating many subsidies paid to
businesses. From 2008 to 2010, subsidies totaling $222 billion were paid
out with more than half going to the top 25 companies. On average the
treasury would save $110 billion annually.
http://www.ctj.org/corporatetaxdodgers/CorporateTaxDodgersReport.pdf
The repeal of the corporate tax would also benefit the IRS directly as much
of its resources is dedicated to administering business compliance.
With repeal the IRS can begin to eliminate thousands of the 80,000 pages of
its code written for corporations. Its enormous staff of corporate auditors can
be transferred to individual tax auditing where billions of revenue is lost due to
tax evasion, yet rarely reported. The benefit would almost add up to the 'lose'
of repealing the corporate tax.
Currently, while the IRS dedicates its auditors to oversee the corporate revenue
stream of 10%, the larger provider of revenue, individual taxpayers, pay over
60% each year and are the biggest source of evaded taxes. Since 2005 the
IRS reports tax evasion cost the treasury more than $300 billion annually.
Congress would also benefit by no longer needing oversight on corporate taxation
or the 'politicking' which drives decisions and donations.
Another "ripple effect" is found in the transformation of the non-profit 'industry' made
up of almost 2,000,000 qualified organizations. Without the corporate income tax
non-profit structuring loses its primary appeal, and the reason most major non-profits
have offices in Washington to lobby politicians. This can also lead the IRS to reevaluate
the need to provide non-profits tax credits, even though they are exempt from taxation.
I believe this would be a first huge step to to grow the economy which is critical to
meet future challenges.
I'm sure other benefits can be be found in addition to repealing the corporate income tax.
But, I am equally sure there will be strong opposition to doing this, especially in industries
that want on our complex system staying just as it is.
Thanks for reviewing, please forward other 'ripple effects' you can think of.
approaches complex issues much differently than the private sector does.
In researching approaches to tax reform found govt. begins by identifying
prohibitive factors and a negative approach that allows fear rather then
potential to drive any attempt to reform.
Congress and bureaucrats looks at projected, non-quantitative barriers
rather than unshackle opportunities that drives economic growth.
The first thing the public needs to know is how much less revenue repealing
the corporate income tax will 'cost' the treasury? In 2015 $340 billion, or 10%
of the total revenue, was sent to Washington.
Retaining this money shifts it on balance sheets from an expense to an asset.
The repeal also eliminates the cost of compliance, $20-30 billion the business
must bare, bringing the amount available to almost $400 billion, money
remaining "within the states" directly stimulating their economies.
Lastly, an issue never resolved, how can $2 trillion of untaxed foreign
earnings of US companies sitting in overseas accounts be 'repatriated', so
businesses could be invested here rather than remain parked in foreign banks.
This infusion of money will enable businesses to expand, invest in new facilities,
equipment and hire more employees. It especially helps struggling companies
that at times have difficulty staying in business or meeting their payrolls.
This benefit dwarfs the $340 billion 'lose' some politicians fear, so do nothing.
But, there is more. Prices on products and services will be driven down as
business costs are lowered, increasing in consumer buying power, even on
major expenses such as housing and health care, the two fastest rising costs!
This surge would be a much needed shot in arm for states, especially those
whose economies still remain mired since the recession ended.
Repeal of our corporate tax would also benefit foreign businesses that may
invest more in American market due to our high corporate tax rate. Without
a corporate income tax they will have the same benefits domestic companies
receive.
Another windfall to the govt. would be eliminating many subsidies paid to
businesses. From 2008 to 2010, subsidies totaling $222 billion were paid
out with more than half going to the top 25 companies. On average the
treasury would save $110 billion annually.
http://www.ctj.org/corporatetaxdodgers/CorporateTaxDodgersReport.pdf
The repeal of the corporate tax would also benefit the IRS directly as much
of its resources is dedicated to administering business compliance.
With repeal the IRS can begin to eliminate thousands of the 80,000 pages of
its code written for corporations. Its enormous staff of corporate auditors can
be transferred to individual tax auditing where billions of revenue is lost due to
tax evasion, yet rarely reported. The benefit would almost add up to the 'lose'
of repealing the corporate tax.
Currently, while the IRS dedicates its auditors to oversee the corporate revenue
stream of 10%, the larger provider of revenue, individual taxpayers, pay over
60% each year and are the biggest source of evaded taxes. Since 2005 the
IRS reports tax evasion cost the treasury more than $300 billion annually.
Congress would also benefit by no longer needing oversight on corporate taxation
or the 'politicking' which drives decisions and donations.
Another "ripple effect" is found in the transformation of the non-profit 'industry' made
up of almost 2,000,000 qualified organizations. Without the corporate income tax
non-profit structuring loses its primary appeal, and the reason most major non-profits
have offices in Washington to lobby politicians. This can also lead the IRS to reevaluate
the need to provide non-profits tax credits, even though they are exempt from taxation.
I believe this would be a first huge step to to grow the economy which is critical to
meet future challenges.
I'm sure other benefits can be be found in addition to repealing the corporate income tax.
But, I am equally sure there will be strong opposition to doing this, especially in industries
that want on our complex system staying just as it is.
Thanks for reviewing, please forward other 'ripple effects' you can think of.
Please add feedback in comments section below, or email ajbruno14@gmail.com "Point of View" blog http://ajbruno14.blogspot.com/
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