Quote:
Originally Posted by Tribesman
Which would be bad for business, "loopholes" are there for a reason, you need to stop abuse of "loopholes" not close them.
Passing a low corporate rate will achieve very little, there is always somewhere which will offer a lower rate.
So you know what that means don't you...more government and more regulation 
The very things they say they need less of. |
No loopholes.
Loopholes are there as payback. The US tax code is so large no one understands it. Lawyers specialize in segments of it (I know a few tax attorneys). They also exist because the rates are too high. The base US rate is very high because they know there are a million loopholes and no one pays the base rate.
That's why you pick a
low rate, then stick to it. Loopholes are not "abused," they are used as intended. Eliminate loopholes entirely, but set a rate that is fair.
Total corporate profits are what, around 1.5 trillion dollars? That means that 15% would generate 225 billion. Corp income taxes during the Bush admin (collected) were higher than right now, at over 300 billion. Assuming our 1.5 trillion profit (~10% of GDP), this means that maybe the corporate rate should be a little higher than 15% (I just picked a number). At 20%, flat, we'd be looking at ~300T$.
There is no good reason for tax loopholes, IMO. Better to design a good tax to start with, and avoid the unfairness that comes from one business getting a break while another does not.
That means LESS regulation, and fewer tax collectors since no one has to determine who falls into the special class of payers that get a subsidy. The same applies to a flat income tax.
Note also that this creates a more predictable business environment. You can easily tell what your tax liability should be.