ASI Senior Fellow, Tim Worstall, argues that the United States should abolish corporation tax in Forbes.
Corporation tax, or the corporate income tax for the US, is one of the more inefficient taxes that we impose upon economic activity. As all should know it’s not actually the companies that pay the tax as companies are not real live human beings. And it’s a standard point that any and every tax lightens the wallet of one or other live human being. Thus it cannot be the companies carrying that burden of this specific, or any other, tax. We also know that the corporate income tax is expensive. All taxes have deadweight costs, the economic activity that does not happen simply as a result of the existence of the tax. Different taxes have different deadweight costs and capital and corporate taxes have higher costs than do income, consumption or property taxes. That is, for the same revenue collected we destroy more economic activity (which is the same statement as “make ourselves poorer”) than if we used property, consumption or income taxes to raise the necessary money for government.
Read the full article here.