Taxing Nonsense

Oh, and since only Republican talking points are subject to strict scrutiny from the “objective” press, let me quickly rebut Nancy Pelosi & Co.’s nonsense about “big oil.” Oil companies get the same business tax breaks as every other company. These are mostly what Democrats mean when they talk about giveaways to big oil. The Ryan plan would rightly eliminate many such breaks, while lowering the corporate tax rate to a level competitive with other industrialized nations. The only “road to riches” for the oil companies in the Ryan plan is its call to allow more oil drilling on America soil, which, yes, would generate profits for oil companies — and tax revenues for the government and jobs for Americans and lower gas prices, too. The villains. [Emphasis added.]

Congress closing loopholes and lowering rates is no guarantee of being competitive or getting revenue. Does anyone think GE will not try to hide even more money and capital overseas once it starts having to actually pay taxes? And what about any and all other companies that would see an effective increase in their tax bills?
The best thing for congress to do would be to eliminate corporate taxation (remember, it accounts for 4% of federal revenue) and close income tax loopholes. This would promote systemic efficiency while eliminating some corporate favoritism and welfare. It would also ensure that more people have skin in the game when it comes to spending, which should encourage more people to demand fiscal prudence.
Quite simply, there is little point in trying to reform something that is trifling and inconveniencing at best, and destructive and counterproductive at worst. Ryan means well, but he has to stop getting caught up in trivial details. The problem isn’t that the corporate tax code isn’t refined enough; it’s that it’s pointless.

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