Its very popular amongst conservatives to criticize the Obama Administration for having corporate tax rates too high. Back in reality, there are nearly an infinite amount of loopholes for corporate Tax Departments to exploit. Many multinational corporation that operate in the US pay zero taxes.
But its Friday so let’s forget reality and return to libertarian fantasyland.
Honeywell CEO David Cote went on TV to advocate for zero taxes for corporations:
He’s not alone. A writer at Mother Jones also played out a possible scenario in which zero corporate taxes might work. He reaches this conclusion:
The big question, though, is what to replace it with. Higher capital gains and dividend taxes are an obvious possibility. Higher top marginal income tax rates. A carbon tax. A financial transaction tax. There are lots of alternatives.
Here’s a better idea.
Give corporations loads of tax shelters IF they reinvest in their US operations. Then jack up corporate tax rates.
Let’s go back to the days when the US economy was kicking ass. Let’s go back to the days when the 1% hid their money in their US-based corporations.
The 1% are going to hide their income. That’s a given. But let’s make them hide their income from the IRS in ways which benefits everyone.
Ship jobs oversees? No tax breaks for that. Shut down yet another US facility? No tax breaks for that. Slash US-based jobs? No tax break for that.
Create jobs in the US — tax break. Open a US facility — tax break. Invest earnings back into your company — tax break.