Armies of tax lawyers, accountants, and IRS agents could be shifted to more productive work. Companies could focus full time on creating new wealth, not finding ways to keep what they have earned.
Many politicians seem to think the corporate tax punishes the rich and powerful and is an indispensable weapon in reducing inequality and redistributing wealth. This is neosocialist myth.
As Ronald Reagan used to say, corporations don’t pay taxes; people do.
The billions in corporate income taxes paid by Wal-Mart and McDonald’s come out of the dollars spent by consumers who shop at Wal-Mart’s and eat at McDonald’s. Where else does Ford Motor get the money to pay its corporate income tax, if not from dollars spent by Middle Americans on Ford cars and trucks?
Middle America pays the corporate income tax.
How could we make up for the lost revenue to government?
Simple. The corporate income tax last year produced $273 billion, less than a tenth of federal revenue. Imports, which kill U.S. jobs and subtract from GDP, totaled $2.7 trillion last year.
Put a 10 percent tariff on imports, and the abolition of the U.S. corporate income tax becomes a revenue-neutral proposal.
Looking back, consider what our political class has done to our once self-sufficient American Republic.
We impose on businesses, our principal job creators, the most punitive corporate tax rate in the West. Through “free trade,” we tell U.S. companies that if they wish to avoid our taxes and get around our minimum wage, health, safety, and environmental laws, they can move to China, produce there, and bring their products back free of charge — and kill their competitors too patriotic to leave America.
“The Decline and Fall of the United States of America” is going to a piece of cake for future historians to write.
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