Subject: taxation of individuals vs. corporations Comment: Tax law was recently changed to reduce double taxation of dividends, by reducing the tax rate on dividends received. This change favored high tax bracket investors, but doesn't help lower income people without investments, and doesn't help business. I propose eliminating taxes paid by corporations. Instead, tax only cash payments to individuals, including salaries, dividends, interest, capital gains, etc. This would leave more cash available for corporations to pay out in salaries, R&D, capital investment, etc. which eventually flows to people, where it would be taxed. The loss in revenue from corporate taxes would be made up by increased tax revenue from individuals, because more money would be flowing into their pockets. Eliminating taxes on corporations would have the added benefit of improving investor confidence in corporate financial reports because there would be much less reason to use loosey-goosey accounting to gild the bottom line. |