Tuesday, June 25, 2013

No "Corporate" Taxes

To my mind, this is why we should get rid of the corporate income tax--and the charitable tax deduction as well. Companies spend an enormous amount of time and money trying to structure their activity to get favorable tax treatment. Non-profits and labor unions engage in elaborate games to push as far as possible without actually breaking the law. And unelected bureaucrats are given enormous power to tell people what is and is not allowed--decisions that may have more to do with their personal feelings about the activity than the actual law. Then we all spend more time and money going into court to fight about it.

When government has power, it will be abused. Sometimes that's the unavoidable side effect of something we need to do. But this isn't. It's time to junk the entire elaborate system.
http://www.thedailybeast.com/articles/2013/06/12/when-the-personal-becomes-political.html

No corporate income would be best.

"Corporate income taxes" don't tax corporations, they tax the people that buy stuff from corporations. They also create mal-incentives that make every corporation less efficient - cost of avoiding tax consequences and costs of not bringing a product to market that might otherwise be marketable but for the tax consequences - and thus harm all consumers.

In addition, there are the perversions of govt power that result whenever politicians put tax deductions and exclusions up for auction.

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