23 June 2014

Let's Get Rid of the Corporate Income Tax

Pat Buchanan:
Consider. Here in America we do not tax charities, churches or colleges. Yet these institutions produce a fraction of the jobs that businesses produce. 
If, as a nation, we are committed to "creating jobs," does it make sense to impose the highest corporate tax rate in the Western world on our biggest and best job creators?
Is this not economic masochism? 
Many governors understand that if you want something in your state, you do not drive it out with high taxes. You strengthen the magnet of low taxes. Florida wants residents of other states to move there and retire there, so it has no income, estate or inheritance tax. 
For years, Rep. Jack Kemp urged the creation of enterprise zones in poor communities like Benton Harbor, Michigan, and Harlan County, Kentucky. Businesses that relocated there would be exempt from corporate income taxes. 
Why not make the United States the largest enterprise zone on earth -- by abolishing the corporate income tax? 
If the corporate income tax were repealed, no U.S. company would think of moving abroad, and every transnational company would think about moving to the USA.
Furthermore, as I observed three years ago, corporate taxes account for less than 10% of federal tax revenue and less than 6% of federal expenditure.  So, not only is the federal corporate income tax stifling, it doesn't generate nearly as much revenue as other taxes or bond sales do.  What good does it do to have such a tax when there is so many costs and so few benefits?