A Progressive Corporate Tax Proposal

alipi

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Thursday December 13, 2012 · 9:35 AM PST

2012/12/13 · 09:35

I have been wondering for a while now, whether there exists a real win/win possibility with regard to corporate tax rates, and I would like to pose this question to the dkos community. Here are the broad strokes:

Since the corporations that underpay their taxes are mostly large, multinational, and in many cases the recipients of extensive amounts of government monies, whereas the corporations that actually have to pay the (admittedly large) 35% tend to be small and at a competitive disadvantage, I propose a win/win means to level the playing field:

1) a Step Ladder corporate tax rate with three steps: 10%, 17.5%, 20%. This would work just like a progressive income tax, but only the smallest and least profitable companies would qualify for the ultralow 10% rate - thus helping young companies thrive!

2) Instead of trying to close all loopholes, which seems to be a game the rich always win, simply write into the law that until companies meet the thresholds laid out above:

- it is illegal to spend ANY money on lobbying, or on "educational campaigns", even indirectly. Violation automatically results in a flat 30% tax rate not subject to deductions.

- it is illegal to receive government monies (Federal, State, and Local), including LOANS. Violations have the same effect as above.

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