April 4, 2014
TAX WHAT YOU DON'T WANT, NOT WHAT YOU DO:
Two Ways To Fix The Corporate Income Tax: Internationalize it Or Kill It (Howard Gleckman, 4/04/14, Forbes)
In an important new paper, Eric Toder of the Tax Policy Center and Alan Viard of the American Enterprise Institute say that corporate tax reforms now being debated in Congress fall far short of solving the widespread problems with the levy. Rather than merely lowering rates and tinkering with tax rules for U.S.- based multi-national corporations, as President Obama and many members of Congress have proposed, Toder and Viard argue that the corporate system needs what they call "major surgery."In a paper funded by the Peter G. Peterson Foundation, they propose two alternatives: Either build a tax based on a broad international agreement on how to allocate corporate income among countries, or kill the corporate income tax entirely and replace it with a direct tax on shareholders. In such a system, capital gains would be taxed as they accrue rather than when they are realized upon the sale of shares.
As we make even the "poor" capitalists we will want more capital gains, not less.
Posted by Orrin Judd at April 4, 2014 7:13 PM