End Corporate Income Tax - Washington Times, November 30, 2004:
The idea and practice of the corporate income tax has been dying slowly for the last two decades. The corporate income tax is a highly destructive tax that greatly distorts proper economic decision-making, taxes the same income more than once, is endlessly complex, and provides a declining share of tax revenue in most countries. For instance, in the United States, corporate income tax revenues fell from 4.2 percent of gross domestic product in 1967 to only 1.2 percent of GDP in 2003, though there was minimal change in the tax rate.So apparently there isn't a lot of money in corporate taxes to begin with.
Those who oppose eliminating the corporate tax will say we cannot afford the revenue loss. They say such things because they do not think beyond the first order. Think about it for a minute. If you eliminate the corporate tax, corporate profits will increase, causing corporations to hire more workers and/or raise wages and invest more in new and better equipment, and/or increase their dividend payouts. All this will cause the price of corporate stock to rise and the government to receive more in capital-gains tax revenues. The government will also receive more tax revenue from the increase in dividends paid and workers hired. If we look at the experience of other countries who have greatly reduced corporate tax rates, like Ireland, it is clear the additional growth in jobs and profits ended up providing the government more, not less, tax revenue.
Libs just have a very difficult time of grasping that concept, and reality.