Issue: Economic: Corporate taxes

[Phil M]

I remember seeing somewhere that Dr. Paul supports raising corporate taxes (after eliminating personal income taxes, of course). I also read a convincing argument about how corporate taxes are authorized under the Constitution while a national sales tax, which I would prefer, is not. Putting Constitutional arguments aside, I'm interested about what people think about corporate taxes. After reading the FairTax book, it seems apparent to me that businesses waste so much money preparing taxes and making decisions in relation to taxes, and other countries seem to get a competitive advantage because of that. However, corporate taxes are quite helpful in controlling negative externalities (spillover costs in production, for example a factory that pollutes a city's water supply, thus forcing part of the burden onto individual citizens. Corporate taxes would shift that burden back to the business so that it would pollute less). Personally, I would like to get rid of most corporate taxes, but have some left to deal with situations like the one above.

 

[DrKevorkian]

I'm going to have to agree that corporate taxes are not the income solution we need. Corporate taxes do not end up as burdens on corporations but as burdens on their customers. It therefore disproportionately effects those who rely on corporations more than not and thus represents an unfair tax.

 

[JosephTheLibertarian]

Well, I know that he support the elimination of "corporate welfare"

 

[megiddo]

Corporate taxes are onerous to small business owners.

It's certainly a complicated issue, but corporate taxes inhibit and kill small businesses all the time. The IRS has its own method of accounting that requires businesses to make stupid business decisions so that they are not punished on tax day.

"Double taxation" seems like just a speed-bump to most people, because most people are collecting a paycheck -- when you're looking to get a livable wage from your small business, it's a major issue.