Corporate Taxes

Well said by Holman Jenkins in the WSJ:

The only real function of a corporate income tax is non-transparency. Taxing a company is a way for politicians to pretend they are not taxing any actual voter to pay for programs that voters find desirable as long as they seem not to come with a price tag.

We doubt we ever said it quite that pithily.  It is why the only real corporate tax reform is to eliminate it.  Yes, there are problems with Value Added Taxes (VAT) but a VAT is a much better choice than a corporate income tax.  We should be eliminating the corporate income tax first.  A grand bargain would be great but first reduce the harm.

Update: For grand bargains see Graetz or us.  He is more details but we include an even grander grand bargain.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s