Why getting rid of the corporate income tax makes sense

Fortune

Big banks can breathe a sigh of relief. The public has a new villain—tax inverters—companies that renounce their U.S. citizenship to get better tax rates overseas. And I say, “Go get those traitors!” Hey, my family pays a marginal tax (federal and state) of 53%. And yet corporate America has warned us for years about our uncompetitive tax code. Washington has done nothing, and foreign countries keep cutting their rates. The tepid recovery has pressured CEOs to generate earnings by slashing expenses. Telling them to ignore foreign tax dodges to save money is like telling a toddler to keep his hands out of a cookie jar sitting in easy reach.

To be sure, we need a short-term fix for inversions. But longer term, we need to fundamentally rethink our corporate tax system. Corporate taxes are a dwindling resource, threatening to become as scarce as clean air in…

View original post 549 more words

Advertisements