Taxing Big Oil & Corp.
One of the big factors in taxation policy is “collectability” of the tax. The wealthy businesses and individuals can always hirer attorneys and CPAs to find different ways around any legislation and regulations.
Therefore simplicity is a very important factor. The “Center” recommends a more simplistic approach while still collecting the same amount or more corporate taxes.
1. Lower the corp. tax rate to 5-15% and make it more progressive.
2. Offset the loss of taxes based on profits with a tax on Domestic Gross Revenue of 1-5%.
Here is what happens:
- At 10-15% tax rate, it will become to expensive to hire and implement many tax avoidance or evasion strategies.
- The U.S. is now competitive with most other jurisdictions. We become a tax haven for many other foreign corporations. This can be a jobs creator!
- Calculating a simple percentage of Domestic Gross Revenue is a much easier calculation and audit than profits.
These percentages that were used are only examples. It would be up to Congress to fine tune the exact amounts.
Mark Pash, CFP