Right now we have one of the highest if not the highest taxes on corporations in the world. As a result jobs and companies are leaving at a high rate. Even smaller companies (like the one I work for) are looking to send the work they do outside of the USA. What can the US Government do to reverse this trend?

I’ve a novel plan that should satisfy almost everyone. Before you say it’s pure BS think about it. No corporate taxes at all. Over seas companies would be moving here, and in droves. And no federal taxes other than personal income taxes. I know your first thoughts are that can’t possible work. But it can. I’ll explain how.

Corporations are in business to make money period. If they don’t they don’t stay in business. But although they want to make money that also don’t want a lot of money lying around doing nothing. They want it working as well. So they put it to work. They renovate, renew, or rebuild their facilities. The purchase new equipment, update older equipment, retool, and other things like that. All these things means the money keeps moving. And when money moves someone makes a profit. Sooner or later all that money will end up with individuals in some shape, form, or fashion.

HERE is where the taxes come in. Any salary, wage, commision, or benefit given to an individual is subject to being taxed. And here’s where you start. If someone is living above the poverty line thay will pay some tax. How much will they pay depends on how far above the poverty line they are. No flat tax, but a graduated tax with no upper limit. It make no sense to tax someone making K at the same rate as someone who makes M a year. Democrats are always saying they ony want to increase taxes on the uber-rich while lowering the taxes on the lower and middle class people. Here’s their chance. I’ll leave it to the statisticians and mathmaticians to figure out how fast the percentage curve rises.

And here’s another thing that will make it work. All the loopholes in the present tax code will cease to exist. The only things you would be allowed to deduct would be for each member of the household(plus on additional deduction for special needs cases) and family health insurance. But other than that NO DEDUCTIONS.

This years US Budget was about Trillion (that’s 12 zeros) to provide for every man, woman, and child, legal and illegal (about 300M) living in the USA. You do the math, I could have made a mistake. But doesn’t that figure out to be about K each? I don’t know about you but I’m not sure I got my K worth of services out of the Federal Government. How much of that was eaten up in buracracy. But that is an whole ball of worms. Let individuals pay all the taxes. What’s wrong with that idea?
G-gal- If you ask me this is about as fair as tax can get. A flat tax or sales tax hits really hard on the people that can least afford it. 10% tax on someone just over the poverty line knocks them back below the poverty line. 10% tax on someone who makes millions or billions and they never even notice it.
E-smile. Under my idea there would be no advantage to play fast and loose with the companies books. Creative financing goes out the window. Companies only do that to avoid taxes.

OH, and under my system before anyone claims a loss they have to actually lose something. Paper loses don’t count!
To all of you who said it wouldn’t work. If’ I’ve replied to you via E-mail I hope I answered your questions. To all of those I didn’t reply to– Shame on you for not allowing the discussion to continue because YOU wouldn’t allow E-mail.