[Ancesthntr]

“Corporate rate would be 20% on gross earnings receipts. No exceptions. No accounting tricks either.”

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You would put every single business that operates on high volume and low margins out of business instantly. You simply cannot tax gross receipts, you MUST allow deductions for labor costs and the cost of goods sold. Business earnings are not like individual earnings. When you or I go to work, other than our transportation costs, we pretty much net everything that we bring home after taxes. On the other hand, a business usually has to pay rent on its premises, insurance, labor costs of many different types, utilities and (believe it or not) actually pay another company something for the products or raw materials that it then turns around and sells to the public.

While I cannot know for sure, it seems to me like you have never been in business before, but have always worked for others.

[factoryrat]

Tax on gross profit, not on operating capital.

If you make a million profit on 10 million in sales, your tax bill would be 200k, not 2 million. The 10 million would encompass the operating expenses that you mentioned. Those wouldn’t be taxed. If you were to roll that back into the company, next quarter, your non taxed operating capital would be 10,800,000.

If you lose money on sales, then your tax bill would drop to 0. No tax on no money earned or a loss. That would be if you used your operating captial to cover expenses.

The “no accounting tricks” line is added to make certain that tax is collected or not based on actual earnings, and not projected earnings.
Make sense?

Or are you one of the types that game the tax code for fun and profit? Either that or you’re a tax attorney.