It was no surprise that this post wasn’t going to be popular with doctrinaire conservatives, and it immediately provoked an interesting response from J.E. Dyer. But rather than delve into an endless rabbit hole of theories and talking points, let’s boil the question down to the basics. Start with two assumptions.
1. The vast majority of fiscal conservatives agree that a 35% corporate tax rate is far too high and the economy, employment and government revenue will be much improved if it is significantly reduced.
2. During election time, the vast majority of Republican candidates include as part of their platform an acknowledgment that the tax code, as currently written, is “broken” and should be improved if only somebody would do something about it.
With those two assumptions in mind:
Resolved: We should lower the corporate tax rate from 35% to 10% immediately. This would represent a cut to less than 1/3 of the current rate. But as an added proviso, the minimum amount that any American corporation would actually pay would be 10% of the difference between the raw amount of dollars they had to lay out to run their business over the course of the year subtracted from the raw amount of dollars they took in. No further deductions, devaluations of equipment, expenses for hiring, nor anything else would apply which would lower the total tax bill for the year below the threshold of 10% of the raw profit described above. If there is no profit, you pay no taxes and may possibly qualify for a rebate to encourage growth.
What say you? In the midst of these heated, rhetoric filled debates, hearing what not only conservative readers, but GOP leaders in Congress would think of such a proposal would be, I think, highly informative.
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