Comments on: Rangel endorses corporate income tax reform http://deanesmay.com/2008/11/16/rangel-endorses-corporate-income-tax-reform/ Defending the liberal tradition in history, science, and philosophy. Sun, 12 Feb 2012 00:15:29 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Eric Rall (Maniakes) http://deanesmay.com/2008/11/16/rangel-endorses-corporate-income-tax-reform/#comment-165408 Eric Rall (Maniakes) Sun, 16 Nov 2008 18:23:25 +0000 http://deanesmay.com/2008/11/16/rangel-endorses-corporate-income-tax-reform/#comment-165408 It's primarily a hidden tax on shareholders, but the deadweight loss does fall on customers and employees as well. I'd like the total tax on investment income to be no more than the total tax on ordinary income, which you could do by taxing dividends and capital gains as ordinary income and setting the corporate tax rate at zero. That's not going to happen any time soon, but I'd like this to be more of a glass-half-full post. I've been expecting Obama to eliminate corporate deductions without offsetting rate cuts (based on what his economic advisors told the Urban/Brookings Tax Policy Center), and Rangel's proposal sounds like a huge improvement over that and a significant improvement over the status quo. It’s primarily a hidden tax on shareholders, but the deadweight loss does fall on customers and employees as well. I’d like the total tax on investment income to be no more than the total tax on ordinary income, which you could do by taxing dividends and capital gains as ordinary income and setting the corporate tax rate at zero.

That’s not going to happen any time soon, but I’d like this to be more of a glass-half-full post. I’ve been expecting Obama to eliminate corporate deductions without offsetting rate cuts (based on what his economic advisors told the Urban/Brookings Tax Policy Center), and Rangel’s proposal sounds like a huge improvement over that and a significant improvement over the status quo.

]]> By: Choey http://deanesmay.com/2008/11/16/rangel-endorses-corporate-income-tax-reform/#comment-165406 Choey Sun, 16 Nov 2008 14:36:45 +0000 http://deanesmay.com/2008/11/16/rangel-endorses-corporate-income-tax-reform/#comment-165406 I guess you could say that Rangel is on the right track but my idea of a perfect corporate tax rate is zero.  If you  want to tax people, do it directly instead of sticking a corporate tax collector between the tax payers and the government to try to hide the fact that it's the corporations' customers who are actually being taxed. I guess you could say that Rangel is on the right track but my idea of a perfect corporate tax rate is zero.  If you  want to tax people, do it directly instead of sticking a corporate tax collector between the tax payers and the government to try to hide the fact that it’s the corporations’ customers who are actually being taxed.

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