Zeev's Turnips Patch-No Politics (ZEEV)

[ardent jd]

Zeev

How about eliminating corporate taxes altogether? Since retained earnings must ultimately flow to shareholders, corporate taxes amount to double taxation, whether they are returned via dividends, share buybacks, or capital gains. This double tax is born by all stakeholders of the corporation - customers, employees, and stockholders - so the negative effects are very widely dispersed. Eliminating the corporate tax would also ease the distortions that you speak of, such as encouraging the use of debt, as well as the overuse of options and myriad others. Dividends and capital gains should be taxed at the individual level as ordinary income. ( Like you, I believe that capital should flow freely, and the government should not be in the business of encouraging any economic behavior, even when it is for "good" things, like savings or investment.) Simple and fair, don't you think?