Actually without a tax on non corporte business and individuals,
capital invesment will very likely increase, they will just assume
the risk, make private contracts and or buy private insurance instead
of counting on the state incorporation subsidy.
If a corporation plans
to do any business in the US such as selling goods and services they
can be taxed on that gross revenue. If they decide not to do business
in the US at all, we can do just fine, probably better without them
with private insuers insuring the investment
risk.
Now of course the federal government can greatly reduce its
feeding frenzy but cutting spending. The present corporate income tax
is expected to bring in 280 billion dollars this year, that is more
than enough to run a constitutional federal government but the
corporate income tax is a crazy quilt of progressive, then
regressive, then progressive rates with all kinds of credits
deductions and exemptions. Total business corporate gross revenue is
over 17 trillion dollars a year, this is not counting non profit
corporations, the great majority of corporations have an annual
revenue of less than 20 million a year, exempt the first 20 million
and the gross revenue tax probably would not need to be over 2% to
bring in the same amount of tax revenue that the federal corprate
income tax brings in. Many corporations that would pay the tax would
be better off than they are now with the income tax. A corporation
that makes 100 million in gross revenue now with a 6% pre tax income
or 6 million could pay 30% of that or more in income tax or 1.8
million dollars. With a gross revenue tax of 2% with a 20 million
dollar exemption they would pay 2% on 80 million or 1.6 million
dollars.--- In [email protected], Jon Roland
<[EMAIL PROTECTED]> wrote:
>
> Shift the tax to corporations? Ever hear of capital flight? This
avenue
> has been explored by economists, and most agree that it would cause
most
> corporations to move to other countries. Many are already doing so
to
> avoid the corporate income tax, and taking jobs with them. It
doesn't
> work for one country to adopt radical changes in its tax methods
that
> don't mesh with those of other countries. Right now the U.S.
benefits
> from overall lower tax rates, keeping a lot of corporations and
capital
> here that would otherwise move away. One of the reasons I propose
the
> purchase tax, which is similar to the value-added tax used by most
other
> countries, is that it would avoid capital flight.
>
> -- Jon
>
> ----------------------------------------------------------------
> Constitution Society 7793 Burnet Road #37, Austin, TX 78757
> 512/374-9585 www.constitution.org [EMAIL PROTECTED]
> ----------------------------------------------------------------
>
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