The basic idea is to annually tax corporations on their GROSS INCOME. Maybe we could make incorporating a federal action and not a state action, and call the annual payment a fee. Those corporations with high gross incomes will pay a higher tax or fee.
To those who claim that corporations will transfer the cost of their taxes to the consumer, I agree they will. Thus all of us consumers woud be supporting our government indirectly and without fuss.
By making corporations with high gross income pay more, we discourage concentration. By taxing the gross and not the net we do not help the corporation that is losing money as we do now. New struggling businesses, however, will be exempt from tax altogether until they reach a certain gross income level, $10,000,000 let's say.
Can you imagine all the trouble and confusion we will do away with? No dreaded April 15. No complicated forms to fill out. No accountaints to pay. No IRS audits to worry about since it's easy for the government to find the gross income of corporations.
This approach is fair. There would be no way for any corporation to use "deductions" to reduce its taxes - as some do, bringing their current income taxes down to zero.
This is a radical proposal. But I believe it will work well.
Comment here.
