I agree that this is probably the most significant change we could make – but also the most unlikely. One of the great fictions that government perpetuates is that the business itself actual absorbs the cost of taxes, fees and regulations. The truth is that these are passed on 100% to the purchasers of their goods and services. They really don’t have a choice.
The problem is that most people don’t understand or accept that the free market keeps companies honest and keeps their profitability within a certain range. Too low and they cannot attract investment. Too high and they attract a lot of attention from competitors from all over the globe that drive prices back down. Yes, companies and industries go through periods where they have a temporary monopolistic advantage, but profitability always snaps back to a reasonable return on assets invested.
But they are just too rich and too easy a target for politicians and they have little incentive to fight this so long as their competitors are all paying the same tithes. BTW this is why it is so important for our Progressive regime to support a World Government that they can dominate with their ideology. Because when a country takes a free market and low taxation, low regulation posture with their own businesses, they immediately prosper at the expense of more statist countries.
As pointed out by C Baker, we would benefit tremendously at the expense of the rest of the world if we unburdened our own businesses. Freedom from such taxation would provide a self-directed wave of investment in the right things at the right time and bring more money and jobs into our country. I believe that corporate taxes represent only 15% of federal revenue – the way we are spending, the loss of it would hardly be noticeable.
