How to Increase Corporate Tax Revenue?

[Free Bird]

So that we can cut taxes for the little folk?

My semi-ignorant thought of how it is accomplished
Is it:
Unapologetic closing of loopholes
Penalize outsourcing by raising their rates above the already raised rate from closed holes (also creates jobs)
Require corporations with majority profits here to have HQ here

Is that it?

[AggregateDemand]

So that we can cut taxes for the little folk?

My semi-ignorant thought of how it is accomplished
Is it:
Unapologetic closing of loopholes
Penalize outsourcing by raising their rates above the already raised rate from closed holes (also creates jobs)
Require corporations with majority profits here to have HQ here

Is that it?

Corporate taxation is paid by the little people. Studies have been conducted since the 50s about who bears the brunt of corporate taxation. The prevailing theory, at the moment, is that employees lack the leverage to pass the tax burden to other parties.

[🦀🎂🦀🎂]

I (!!) agree with AD here. Corporate tax is overly burdensome and regressive. Much better to cut it down and tax dividends and capital gains at full income tax rate IMO.

[King]

Yes, corporate tax is a waste of time. We are much better off with low corporate tax rates and higher personal income tax rates, incentivizing executives to invest profit in their companies rather than their bonuses.

[DC Al Fine]

Corporate taxes should be cut to nil. After all, a corporation is merely a bundle of contracts. Taxes are ultimately borne by the shareholder and consumer. The tax system should reflect that.

[King]

Corporate taxes should be cut to nil. After all, a corporation is merely a bundle of contracts. Taxes are ultimately borne by the shareholder and consumer. The tax system should reflect that.

It's a very unpopulist sell, unfortunately. I don't even think Republicans could pull it off with their base.

[Citizen Hats]

Corporate taxes should be cut to nil. After all, a corporation is merely a bundle of contracts. Taxes are ultimately borne by the shareholder and consumer. The tax system should reflect that.

I wouldn't say nil, but much lower than present.

Limited Liability is a substantial privilege that shouldn't be handed out for peanuts

[DC Al Fine]

Corporate taxes should be cut to nil. After all, a corporation is merely a bundle of contracts. Taxes are ultimately borne by the shareholder and consumer. The tax system should reflect that.

I wouldn't say nil, but much lower than present.

Limited Liability is a substantial privilege that shouldn't be handed out for peanuts

You're missing the point. The corporation is nothing but a bundle of contracts. Limited liability might be a privilege, but the benefits of such privilege ultimately flow to the shareholder.

[AggregateDemand]

Corporate taxes should be cut to nil. After all, a corporation is merely a bundle of contracts. Taxes are ultimately borne by the shareholder and consumer. The tax system should reflect that.

I doubt 0% tax rates will ever pass, but at least make dividends tax deductible.

[Antonio the Sixth]

I would be totally OK with abolishing the corporate tax, in exchange for creating a universal income tax (on the basis of labor and capital income taken together) with highly progressive rates.

[AggregateDemand]

I would be totally OK with abolishing the corporate tax, in exchange for creating a universal income tax (on the basis of labor and capital income taken together) with highly progressive rates.

The rate you're talking about makes all the difference. Few would disagree with progressive effective rates, but if you want progressive statutory rates, you don't need to reform taxation. Just impose inequitable vindictive taxes against people you don't like. Easier to pass. No false pretense of reform.

[Antonio the Sixth]

I would be totally OK with abolishing the corporate tax, in exchange for creating a universal income tax (on the basis of labor and capital income taken together) with highly progressive rates.

The rate you're talking about makes all the difference. Few would disagree with progressive effective rates, but if you want progressive statutory rates, you don't need to reform taxation. Just impose inequitable vindictive taxes against people you don't like. Easier to pass. No false pretense of reform.

jao

[136or142]

I (!!) agree with AD here. Corporate tax is overly burdensome and regressive. Much better to cut it down and tax dividends and capital gains at full income tax rate IMO.

I was going to say the same thing, but you've already posted it.  

Eliminating corporate income taxes provides an incentive for businesses to reinvest their profits, rather than pay them out in dividends or other short term measures.  Given that most countries have already cut their corporate income tax rates significantly in recent years, eliminating them entirely likely wouldn't have a huge impact on tax revenue, especially with increasing dividend and capital gains taxes.

There have been an increasing number of prominent columnists and economists on both the left and the right who have proposed this, most notably in Canada, Andrew Coyne.

I realize in the last few years, many corporations have been hoarding their 'dead money', but this obviously can't continue in the long run if companies want to remain 'going concerns.'

Obviously corporations should continue to pay property taxes, payroll taxes and sales taxes where applicable.

[Citizen Hats]

Corporate taxes should be cut to nil. After all, a corporation is merely a bundle of contracts. Taxes are ultimately borne by the shareholder and consumer. The tax system should reflect that.

I wouldn't say nil, but much lower than present.

Limited Liability is a substantial privilege that shouldn't be handed out for peanuts

You're missing the point. The corporation is nothing but a bundle of contracts. Limited liability might be a privilege, but the benefits of such privilege ultimately flow to the shareholder.

I'm not missing the point, and your response would be better formulated towards the 'tax the corporations, man' crowd. 

Corporations aren't simply a bundle of contracts.  A partnership is a bundle of contracts.  A corporation is a bundle of contracts who's owners are endowed with the privilege of being legally separate from their creation. If my dog bites someone, I am responsible. If I own a dog via DogCorp, and it bites someone, I am not responsible, but rather the construct known as DogCorp is.  It took a bundle of contracts *and* a privilege from the state to make that so. 

While that is a dramatically simplified example, it illustrates the privilege of limited liability is substantial, and I would argue that there is some amount of justification for charging for it.