A former treasury secretary has suggested lowering the corporate tax rate to zero. ZERO. The gist of his argument is that as the corporate profit is just a conglomeration of the profit of its shareholders that instead we simply allow that profit to flow to the shareholders and tax it at that time. And that those profits be taxed as income. I used to be a partner in an LLC. It made money but its taxes were zero. The money it made came to me as regular income. If all corporations operated this way then there would be no tax inversions and we would get rid or reduce the government discount on capital gains. If Burger King wants to have its headquarters in Canada, no difference to an American shareholder. Now this also has the benefit of encouraging better care for the corporate employees as shareholders do not derive as great a benefit from taking all the profits themselves and there is no reason to hold cash offshore in a tax avoidance strategy. Keep in mind that every dollar saved by BK is going to have to be made up by people and small businesses that can't benefit from this tax scheme.
"The best way to insure that it's shareholders and owners who actually pay the corporate income tax is to make it a tax on capital gains enjoyed by shareholders and owners rather than a tax on corporate income"
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