(Replying to PARENT post)
That aside, to the main point, I don't think it is really an argument against lowing nominal rates, but rather an argument against lowing effective rates. Classically tax reform is involves broadening the base (eliminating exemptions, deductions, credits, etc) while lowering the nominal rate. That may not be what the Republicans are planning on doing, but won't really know until the details are hammered out.
(Replying to PARENT post)
Otherwise, I am not sure that federal corporate income tax isn't high, if you consider that any dividends paid to actual persons pay income tax again. I can agree paying 35% of my profits in either way, but not twice.
(Replying to PARENT post)
That being said, I have a tax theory. Forgetting about the political power required to do such a thing. Would it be possible to do away with all the taxes and replace them with a very low sales tax that gets applied to everything. e.g. Farmer buys a cow, pay 1% sales tax Milk wholesaler buys the milk to process, pay 1% sales tax Shop buys the milk to sell, pay 1% sales tax Shop buys labour to work in the shop (staff), pay 1% sales tax I buy milk to consume, pay 1% sales tax
More examples. Trade BitCoin, pay 1% sales tax Sell a house, pay 1% sales tax Trade shares, pay 1% sales tax
I accept some of this will be hard to police without the incentive for smaller businesses to claim the tax back.
I believe the key to making this work, is having no possible way to get exemptions. Doesn't matter if you don't make a profit, you still pay, doesn't matter if you are a organisation looking to on-sell or a consumer, every transaction pays and no way to offset this.
Finding the magic % would be difficult, but is the key part. Would this be possible? Where could I go on the inter webs to ask if such a scenario would even be possible
(Replying to PARENT post)
For instance, when Trump said that when he is going to reduce the taxes, jobs would come roaring back in. To prove how this wouldn't happen, pedal.tech tries to study the amount of growth, companies who currently pay less than 20% tax, showed. But that's a ridiculous way to see the merit of that argument.
Imagine if a teacher said, "I am going to reduce the amount of time people currently spend in doing homework from 3 hours to 2 hours. This will result in more well-round development of students as they will have more time to do other things.
Now of course not all students spend 3 hours doing homework, some spend more than 3 hrs, some 2 hrs, some no time at all. So according to pedal.tech, we need to look at any student who is spending only 2 hours and see what rounded development they are having, but that does not tell you what the students who spend 3 hours would do in their extra time, or what the students who only spend 2 hours would do (since now they are able to finish their homework).