“Congress should eliminate federal corporate income taxes, which in 2012 contributed only 9% of federal tax revenues. After all, corporations pay no taxes; their customers pay them in higher costs for products and services.”, Jon Titus, Herriman, Utah
“I could not agree more. It makes no economic sense. And designation of “for-profit” and “not-for-profit” is really farcical, when you have executives like the NFL (a not-for-profit) Commissioner making $44 million a year and not-for-profit college executives and coaches making millions a year. Taxing the individual only and not the artificial entities legal structure is absolutely the way to go. And It doesn’t affect anyone’s views about taxing the rich more or less either. And it’s much simpler to administer (reduced legal and accounting fees). The only complexity is that all income at the entity level must be passed through to the individual owners/shareholders, without regard to whether or not it was paid by the entity in cash (a dividend). In other words, treat for tax purposes all corporations as S-corps (no retained earnings allowed for tax purposes). An ancillary benefit might be that it helps eliminate the bias (these days in some circles) that working for a for-profit entity is less noble than working for a not-for-profit or the government.”, Mike Perry, former Chairman and CEO, IndyMac Bank
We Should End the Corporate Income Tax
Congress should eliminate corporate income taxes.
Sept. 17, 2014 3:42 p.m. ET
Anti-inversion legislation will go nowhere because it makes no sense (“Lew Urges Congress to Curb Inversions,” Marketplace, Sept. 9). To avoid these moves, Congress should eliminate federal corporate income taxes, which in 2012 contributed only 9% of federal tax revenues. After all, corporations pay no taxes; their customers pay them in higher costs for products and services.
Eliminating federal corporate income taxes would cause many overseas companies to move to the U.S., which would greatly improve our economy with more jobs, more income, lower corporate operating expenses and lower costs for consumers. I suspect company valuations would increase as would dividends, both of which would improve the financial health of retirement accounts and 401(k) plans.
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