Diatribes - Computer, Economic & Political

This blog is really just for me. If you find something interesting on it, leave me a comment. If you disagree with something, let me know what and why. In this blog I am just putting some of my thoughts for computers, the economy, politics, and other topics in writing.

25 October 2005

Eliminate all corporate taxes. Here is why.

Here is another pervasive view of taxes. This guy thinks corporation should be taxed more. Here is why he is wrong.

First he has a messed up view of corporations. He thinks they are evil rich people gouging the poor and keeping all the money. Look at the last article I posted, corporations are buckling under competition and laying people off. What happens to the revenue corporations garner? It pays healthcare bills, workers, and capital expenses. We should eliminate corporate income taxes all together. Then our firms might be able to afford our workers. They might be able to afford healthcare (something the govt should avoid providing like the plague). They might be able to compete against cheap foreign labor. We, currently, try to help them by giving them huge handouts. This has a huge distortive effect: it is more lucrative to pursue handouts (because your competitors don't get them) than lower taxes. This is a policy that must stop, we are encouraging the wrong sorts of corporation (handout seekers) rather than efficient ones.


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