Should we eliminate corporate taxes?

Question

One aspect of many tax plans is to eliminate the taxes paid by corporations. There are many reasons to do this.

1) Any tax the corporation pays is passed on to the consumer anyway.

2) 90% of all lobbying is to create some tax loophole for a particular industry. Get rid of the tax, you get rid of the lobbyists.

3) It would eliminate the primary reason for corporate 'creative accounting.'

4) Corporations could get rid of an army of tax attorneys and accountants.

The only reason I've seen to keep the tax is so that the gov't has a reason to audit the companies. No tax, no oversight. But I think the SEC could still call for an audit any time they wanted one on any publicly-traded company.

So, is it better to eliminate it?

Answer 1

We should eliminate all taxes as currently written and start over with a flat tax structure. Everyone taxed the same percentage unless you live below the poverty line, in which case you should pay no tax at all. No loop holes. Nada.

Downside of this is a lot of accountants and lawyers would be looking for a new line of work.

Answer 2

FairTax! FairTax! FairTax! Corporate taxes are a farce. They are ultimately passed on to the consumer. Out of every dollar you spend, 22 cents on average go to the feds in the form of embedded taxes (taxes that were paid by suppliers and manufacturers on the way to makeing the product you are buying). It is just a trick by the government to fool people into not realizing what their actual tax burden is. Same with the automatic withholding system. On april 15th people get money "back" without paying attention to how much money they actually gave.

The FairTax takes care of all of this. And for those of you who are concerned with the little guy, the FairTax is great for them. There is a large section of wealthy people in this country that don't work, they just live off their wealth. They aren't paying income tax at all. The FairTax changes this. Tax becomes based on consumption, rather than income. So if you are a low income family that barely makes ends meat, you don't pay any taxes at all because the basics of life are pre-bated.

Answer 3

No.

Your assumptions are not correct. There would still be oversight of public companies on accounting.

There would still be lobbying since that lobbying is more than just about taxes. In fact, I'd bet that the majority of corporate lobbying is for policy and laws unrelated to taxes - or even getting gov. contracts.

I don't think taxes are simply passed on to the consumer. Some are but some aren't. The market has a hand in that product costs simnply can't simply abosorb all the costs of taxes.

Answer 4

Corporate taxes are actually needed. But what isn't is the income tax. The 16th Amendment was never ratified by the states, was "passed" during Christmas break when most of congress was with their families, and several Supreme Court rulings have declared the tax unconstitutional. Oh, and yeah, income tax funds the interest on the national debt, nothing more.

Before the income tax was imposed on us, corporate taxes generated enough revenue for public services and such. But for local needs, such as education, local taxes take care of those. Highways? Gasoline tax takes care of those. There are a gazillion other taxes that take care of our needs. Income tax is a fraud.

Answer 5

i love this question. so here goes.
1. this is incorrect. taxes are paid on profits before dividends. therefore taxes are not paid by the consumer, but by the shareholders. dividends are taxed and those taxes are paid by the shareholders. the purpose of any business is to make a profit for the owners of the business (shareholders, partners, sole proprietor).

the rest is right on. and what the government won't tell you is that the gov't would collect more in taxes if they did eliminate taxes on businesses.

what we need is to eliminate all taxes of every kind and go to a simple CONSUMPTION TAX. this is where the final consumer pays one tax on what you but where that purchase is not to be resold. like buying lumber and nails to build your kids a doghouse.
this would be a flat rate tax paid on everything paid at the time of sale. many will argue to exempt food and Rx drugs, but that will have to be worked out.
take a bigger item: a house. you buy a house for $100M. a flat rare tax is added at time of sale to the purchase price. same if you buy a beer for $2.

make sense? sure but this bunch of carpetbaggers and scalawags in dc today and this is not even warm air.

too much good old graft and corruption for this.

I've said enough for now. want to continue, let me know.

thanks for the question.

Answer 6

Gee eliminate tax for corporations and that means an increase to taxes for the little people, ones that many can't afford already. Do you honestly believe that you would see price reduction based on tax elimination for businesses, hell no. Look at oil company's, the cost of barrels decreases but the market price doesn't, if anything it continues to increase.

Answer 7

i'd desire to choose on your plan if a constitutional modification substitute into exceeded to make constructive that businesses had no rights under the form. In different words they have been taken care of as non entities with the only function being to make or do what ever it extremely is they do. No lobbying the government completely unlawful company officers pass to detention center no marketing campaign contributions to any politicians or events caught pass to detention center for long detention center term. And someone fee for government centers used contained in the actual share they use. maximum persons tend to for get in marketplace you decide on land, labour and capital all 3 make a contribution to salary and none works on my own. So no company at the instant are not the lifeblood of u.s..

Answer 8

I would prefer to simplify federal income taxes across the board, there are many inconsistencies in the tax code. I also resent progressive tax codes. It all should be flat. 15% for everyone. corporate or personal.

Answer 9

Down with the IRS! Down with payroll taxes! Down with income taxes! Support the Fair Tax!

http://www.fairtax.org/

Answer 10

Fair Tax!!!