Nobody’s talking about the math of this. It’s interesting. Projected 2011 corporate income tax receipts are $247 billion versus $1.463 trillion total income tax (corporate and individual). That’s roughly 17%. (Source: http://tinyurl.com/3sopxbo.)
Another way to look at this is the relationship to total federal spending. That’s projected to be $3.8 trillion in 2011 (Source: Ibid). Projected 2011 corporate income taxes are 6.5% of that number.
If we had the political will, could we cut $247 billion from our annual US federal spending?
You all know the answer is yes.
What would it buy us?
Capital flooding in from all corners of the globe to do business in the new US tax haven. American corporations would repatriate trillions of dollars stuck in as yet un-US taxed foreign jurisdictions.
Job creation would flourish.
Moreover, individual tax receipts would rebound; I expect soon replacing the lost $247 billion.
So, yes. It’s a brilliant idea. We should do it.
Very good analysis here. Might have to use your ammo for future web battles. Thank you, freepdawg.