One of my favorite conservative economists, Greg Mankiw, recently wrote a piece about corporate taxes in the New York Times. There are two basic schools of thought when it comes to corporate taxes: Either treat corporations like individuals, where they're obligated to pay taxes, or treat them like a pass-through entity, where they, in effect, pay zero taxes.
It is my opinion that the double taxation that currently exists because of the corporate income tax is onerous to the economy and to individual taxpayers. I think we should abandon both forms of taxation, both corporate and individual, and use a value-added tax (also known as a sales tax).
We are smart enough to figure out how to make this fair and equitable. But we won't because our system is so political that the special interests will fight it out until nothing happens.
It's too bad too, because this is the time when I think real change is not only acceptable, but sought-after.
Economic View - The Problem With the Corporate Tax - NYTimes.com
Be sure to check out the development of my free eBook, "Stock Investing Basics."
Want to learn how to sell anything online? Here's how.
