This is the sixth installment of the Libertarian Manifesto of Collin County Libertarian Party member Albert Meyer. Albert has been kind enough to share this with us. We hope you find it useful.
Corporate taxes yield less than $300 billion in revenues to the Federal government. That’s pin money and takes less than a month to vaporize in Washington. There is much truth to the saying that corporations do not pay taxes (meaning the do not bare the burden). Consumers do. Corporations are able to pass most of the tax expense onto customers through proper pricing policies. In this global economy, corporations are also able to divert profits to low-tax regions, or so called tax havens. The bureaucratic politicians in Washington try to plug the loopholes, but of course they never do. They just talk about it. They are too beholden to the corporations.
We have a far more realistic solution and not nearly as radical as it sounds. Consider that corporations are the heartbeat of the economy, where all the innovation and engines of economic growth are centered. They are essentially the only source of job growth. Very simply, abolish corporate tax altogether. This may create cash flow problems in Washington in the short-term. To solve this, we would institute a temporary 0.05% tax on revenues, which should collect close to $200 billion. Once taxes are calculated with reference to net income (the bottom line) the complexities become endless as our humungous tax code proves. A small tax on revenues (top line) will turn tax accountants and lawyers into entrepreneurs and more valuable members of the economic community.
The surge in jobs as a consequence of this measure will astound the most skeptical of observers.