Agreed. I'm being serious, I can't understand why corporations are taxed at all. The money going to US citizens already gets taxed as income (although at capital gains rates). Even if the money funnels through a few corporations before it gets to the individual.
Money that would go to foreign shareholders (or foreign corporations) should be taxed at the same rate.
If we didn't tax businesses, they'd be more incentivized to stay in the US or even move here.
What would we lose from not taxing corporations (and adjusting capital gains tax to make up for that)?
You could also argue that income tax makes no sense, because the people are going to pay sales tax or property tax with it anyway.
The more you concentrate the tax in one area of the economy, the more you incentiveize people to try to find a way around that specific tax. Spreading it out reduces the risk of making people behave otherwise irrationally just to avoid paying tax.
