This will make more sense once my next IMF post is published, but I propose eliminating the corporate taxes. I say this because as I was completing my tax return, I took a look at the handy revenue chart the IRS placed in the instruction booklet. I saw two things that really intrigued me. First, debt accounts for 40% of the federal budget’s funding. Second, corporate taxes account for 4% of the federal budget’s funding. Given that corporate taxation is as much a redistributive system as anything else, it makes little sense to bear the administrative costs in light of little is actually contributed to the budget.
Income taxes account for 26% of the budget, and have a higher return on costs. I propose, then, that corporate taxes be eliminated, and that revenue is supplanted by closing loopholes, especially for low-income tax payers. If they are going to receive government benefits, the least they can do is pay for some of them.
Of course, this proposal will seem somewhat hypocritical in light of my next post. I simply want to note that no matter how you analyze it, corporate taxes are simply a waste. Not only are they costly to collect, relative to revenue, they are also costly to comply with which makes starting and running a business in America less appealing. Eliminating corporate taxes encourages business growth and eliminates government inefficiency. Naturally, this plan is doomed to fail.