The corporate tax system is broken, badly broken (Tax lobbyists help businesses reap windfalls. Boston Globe, March 17, 2013: A1, A8, A9).
fix is simple: abolish the corporate tax. If many corporations are not
paying it, then it does not serve as a reliable source of revenue. If
many fine minds are engaged in counterproductive legal and lobbying
activities to reduce taxes, a better use could be made of their talents.
The corporation tax should be replaced by a financial transaction
tax. Such taxes are being introduced in Europe's financial centers so
that such a tax imposed in the US would be unlikely to result in a
flight of trading to foreign bourses.
A very small tax applied to the multitude of financial transactions
would generate the funds to replace the lost corporate taxes and might
even reduce the speculative frenzy that sometimes inflames stock and