Wednesday, December 31, 2014

A libertarian call to end the corporate income tax

Here’s a column that will not please the Left, “Top 10 reasons to abolish corporate income tax”, by John Steele Gordon, on p. A11 of the Wall Street Journal, Tuesday Dec. 31, link here  (paywall). 
Gordon argues that the corporate income tax leads to double-taxation, and “crony capitalism”, and confuses markets, which should be more concerned about actual raw earnings and profits rather than tax gimmicks.  He argues more foreign investment will return to the US if the tax is eliminated. 
 Presumably, though, individual income taxes might go up.  Vox points out that corporations now pay only about 10% of income taxes, when it used to be about one third, story by Danielle Kurzlebe, July5, 2014, here.   Vox also points out, in another recent piece, that “soaking the rich” doesn’t support the safety net was well as broad based taxes common in Europe.
I can remember that, back in 1972, the People’s Party of New Jersey was advocating a “single tax”, which would be a personal income tax.  It sounded like conventional Marxism to me.  The “single tax” sounds like a term from a high school history test.  

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