[justlurking]

Another point, which was made repeatedly during the attempt at tax reform during the Reagan administration.

If there is going to be a corporate income tax, the top marginal corporate tax rate and the top individual tax rate should be the same.

Otherwise, an accountant can just shift income from the individual to the corporation, or vice versa, to utilize the lowest income tax rate.

[griswold3]

Many ‘Progressives’ think that when you raise effective tax rates, you will increase revenue. Businesses know what happens. Pray, tell me why Groupon paid 1600% tax to set up shop in Switzerland.
http://money.cnn.com/2012/02/08/technology/groupon_earnings/index.htm
1,600% tax rate: Analysts jumped on an eye-popping figure in Groupon’s report: a tax expense of $34.8 million in the fourth quarter, which the company said is an effective tax rate of approximately 1,600%.

That massive tax rate was the result of profits in “certain international countries,” as well as income tax laws related to Groupon’s new international headquarters in Switzerland.

“It makes us a good corporate citizen,” joked Groupon CFO Jason Child, who added that the company expects its effective tax rate should plunge to “the low 30s, over time.”

[mjp]

A tax on corporation profits and household income is an assault on savings. Less savings leads to less investment which leads to less capital accumulation which leads to less production which leads to less supply which leads to higher prices which leads to lower average wage rates for the middle class worker which means a lower average standard of living for the middle class worker.