http://spectator.org/archives/2010/08/20/animal-economics-unleashed

It's a slightly long read but I'll sum it up pretty quickly:

Get rid of ALL corporate taxes. Why? Because we're all paying them for the corporation. A corporation treats taxes like a business expense and add that into the cost of all of their products so in the end YOU pay it, not them.

With no corporate taxes.... cost of good would drop 20-40% in a heart beat and you would suddenly have an environment where investment in those companies would be better than it has been for 100 years.

It won't happen.... because it is too "corporate" friendly.... except under this plan it would actually INCREASE corporate competition because more companies could afford to get into the marketplace.

Anyway, thoughts?

Sounds like it makes sense, but I don't know too much about economics. So would it be guaranteed that their prices on goods would drop?

Yeah, I don't know much about the economy, but that sounds good to me. =D

tonetone714 : yes, it would. There is enough competition that any company would be stupid to not drop prices. Would the price drop be the full value of the taxes they had to pay??? Not likely.

But the lack of taxes to pay would likely result in higher profits for companies which would mean more expansion and new jobs and more dividends for shareholders.

I'm no economy expert BUT I don't think that makes much sense. If they did drop the corporate tax on products then they would fall under and not earn anything probably. Their products are already being bought for cheap overseas from China. I do like buying stuff for cheap but there is a limit here if we push for even lower prices then that means employees will make even less money then they do now. But this makes more sense in terms of government we should not be paying taxes for their salary they should have to earn it like any other business that is the problem.

Here's how I would fix the economy. I would kill tax completely and make the government earn their own money. I would make it illegal for corporations to hire overseas workers or illegals to handle domestic customer service. I would increase the minimum wage up higher because I KNOW McDonalds and Wal-Mart have so much dam money they can't be screwing their employees like that. I would make it illegal for multinational corporations to use technology or machines or overseas workers to outsource.

So in short, corporations NEED to be paying their employees better, stop outsourcing to machines and foreigners and focus on building good strong things domestically. Kill all domestic tax and if we have to have tax only put it on imported goods. That way if the tax was really high on imports corporations would probably have no other choice then to hire domestically. That is how it SHOULD BE but these corporations are using free trading to cheat their businesses and earn some really good profits while screwing this economy at the same time.

Wal-Mart might look like a life saver but in reality, it is corporations like them that are killing the economy because they have completely ignored domestic business. Once they move into a neighborhood all the small businesses die and in place are multinational corporations stealing the economy before your very eyes. It looks nice from a customer perspective but in terms of business corporations are the enemy. Just like politicians they will do anything to get to top of ladder by using the people and blinding them with cheap goods no one can refuse.

I agree with most of the rest of what you said.... but how would lowering taxes on corporations mean workers earn less? It would probably mean workers would earn MORE because there would be no taxes to pay on the bottom line so more money would be available for things other than paying the government.

I am not sure I was just guessing that they are profiting on these taxes somehow and using some of it to pay for their employees But I think either way its a bad idea to eliminate taxes from corporations because they are part of the reason why the economy is bad. It can be hard to balance, while killing tax will be good for the customer it will probably be bad for government so they will not do that. A better solution is to kill the tax from the customer side and put it on the import side when they buy items from overseas though that won't really change much. If corporate tax was abolished I could still see them continuing business as usual and still screwing over employees / outsourcing even more.

I think we should leave tax on corporations but don't tax anything on small businesses. Small businesses should be tax free only people importing should be taxed because importing products means less profit for our country so they basically tax the crap out of everything to try and make up for it. If small businesses were tax free then they might have a chance to compete against these giants and would probably help our economy a bit. When I say tax free I am talking about everything will be tax free, government would not take any tax out of your paycheck either if you were a small business. I think that would be awesome and more people would want to work for the smaller companies

If a business can pass on the increased cost, they probably will. Cutting all taxes on corporate income should stimulate the economy in the long term. The government will get less money off the bat, but the money that wasn't taxed will be cycled through the system more, through buying/selling and paying new employees, so the government will get a lot of it back through sales and income taxes. Some would say that relying on the rich to pay their "fair share" in income tax would not work, but these problems are inherent of the progressive tax system.