Our current approaches to Corporate Income Tax and the Employer’s portion of Social Security (FICA) might have made sense in a simpler economy without global competition. But now they increase the cost of hiring US workers, adds compliance costs and allow multi nationals to avoid paying US income taxes.
We need to re-think our tax code. We need to make it match the realities of an advanced global economy. We need to transition our corporate tax from profit based to revenue based. We need to transition or FICA from employee based to revenue based. It wouldn’t be nibbling around the edges. It would be a much needed rethinking of how we fund government that fits the needs of our modern world.
We need to re-think our tax code. We need to make it match the realities of an advanced global economy. We need to transition our corporate tax from profit based to revenue based. We need to transition or FICA from employee based to revenue based. It wouldn’t be nibbling around the edges. It would be a much needed rethinking of how we fund government that fits the needs of our modern world.
We Need to Move to a Revenue Based Corporate TaxThe US and other countries have proposed a global 15% minimum corporate tax. However, it’s not a change in tax rates that our corporate tax system needs, it’s a change in structure. We need to move from taxing profit to taxing revenue. Doing so would be a far more effective way to end the tax avoidance strategies of multi-national corporations and would reduce bureaucratic costs for all businesses. If the transition was revenue neutral, it would result in a tax cut for many small and medium sized US businesses, and a significant tax increase in companies that use accounting to move their profit offshore to avoid paying US taxes. When the corporate income tax was established in the early 20th century, it better fit the stage of development of our economy. Industrialism was new and the United States was a land of virtually untouched natural resources. ... Continue reading... |
Replace Employer Social Security with a National Revenue TaxThe Proposal: End the Employer’s contribution to FICA and Medicare. Replace the $540 billion in revenue with a Revenue Tax, payable by all companies based on their U.S. revenue. The Benefit:
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