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Posted on 09/04/2011 12:31:53 AM PDT by Bigtigermike
Sarah Palin proposed eliminating all corporate taxes in her speech to the Iowa Tea Party today. This is HUGE. The ripple effect of putting this in place would affect a vast swath of corporate America, in addition to eliminating crony-capitalism.
Consider for a moment all those that would be affected by such a policy. Corporate tax attorneys, CPA firms and countless tax department employees would lurch to a halt in their jobs. The focus of countless corporate controllers would shift from tax avoidance to net income maximization.
Countless corporate lobbyists would be out of a job overnight. Their corporate benefactors would pull the plug on their funding immediately. The focus of corporations would turn away from Washington, DC in a heartbeat.
Companies that have relied on government largess to support their bottom lines would be horrified. Weaknesses in governance would be exposed overnight as the SEC would mandate that companies disclose any risk in their business plans beyond company guarantors. GM and Chrysler would suffer a major downgrade in their stock valuation because the federal government would no longer underwrite and support their operations.
In a word, the free-market would explode! Risk-taking would suddenly be in vogue again and entrepreneurs would be empowered to invest. There would be a massive shift of cash out of savings into new endeavors. Corporations would scramble to find fitting investments for their stockpiles of cash. The value of small companies would skyrocket as these investment dollars would be looking for a good return and compete for the best ideas.
The downside? Washington politicians would immediately demonize the idea as a major impediment to deficit reduction, as if they’ve ever cared about that in the past. The caterwauling about reduced revenues for Washington would be deafening! If such a policy was implemented, we would watch Washington pundits undergo convulsions as they began to realize how their lives would be impacted. There would be no incentive for ANYONE involved in business to pay attention to them.
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She has clearly thought through all the problems she has to confront as POTUS. Ready to unleash her genius when in the White House
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The elimination of corporate taxes is not going to happen as long as the Democrats and their “mainstream” newsrooms can continue to con America’s ignorant chattering class into believing that a piece of notarized paper filed in some bureaucrat’s office somewhere actually pays taxes. They will, in fact, studiously avoid mentioning that in reality “corporate taxes” ultimately come out of regular working people’s pensions, IRAs, 401ks, college funds, and other investments.
There is no fixing “stupid”.
Remember, this is an America that elected a community organizer from Chicago as President of the United States and Commander-in-Chief of the Armed Forces. We are freaking doomed.
>> in addition to eliminating crony-capitalism.
Not quite. Graft can be had through regulatory chicanery, credits, eminent domain, etc.
The abolition of corporate taxation isn’t considered a radical idea in most of the world. Even some socialists support it in my country.
The word “corporation” seems to produce irrationally negative feelings among americans, though.
Corruption, as you correctly point out, will always find a way. It's just nice that we'll get a lot of fringe benefits from making corruption relocate.
It’ll never happen. Too many people have a vested interest in maintaining and exploiting the current tax system. Those people are too far up the corporate and government food chain to stop, let alone slow down.
he US has the highest corporate taxes in the industrialized world, plus we double tax on money earned abroad.
>>he US has the highest corporate taxes in the industrialized world, plus we double tax on money earned abroad.<<
Not to mention that we double tax dividends; tax SS payments as ordinary income and tax interest on savings.
It appears Palin is supporting what Perry said about 3 weeks ago about no corporate taxes.
What’s the downside?
Corporations...
Businesses that have moved overseas would rush to return to the new tax-free America and re-start doing business here, building new plants and offices, re-employing Americans who want to work.
If only our President and clowns in Congress could see the truth of a non-partisan solution...
We could do this because we are Americans and we are exceptional people.
The elimination of corporate taxes can only happen if the tax system itself is changed. The most fair tax is a sales tax with zero other taxes.
Everyone would pay for what they buy from me to you to the hardware up the road to the corporation in the big city.
If you buy it, then you pay the sales tax on it. Will that get passed on in prices? Yes.
The bottom line is what this article says. There will be so many opposed that it won’t happen for quite a while, if at all.
The downside is that left and right-wing radio would not have anything to complain about. Second, politicians and parties might have to stop being so vicious to each other and knuckle down to the job of really doing something constructive for America.....no chance this happen, of course.
Sarcasm/off
It would also be the most economically effective.
With no taxes on work, capital or production, this country would become a magnet for business development. And though the tax would probably be in the 25% range, pre-tax prices on goods would drop dramatically absent the current taxes.
Anti-capitalists will claim that would never happen -- but competition would force it.
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