In theory the federal government collects income taxes from corporations.
In the case of large multinational corporations, we have been fighting a losing battle.
They have numerous accounting tricks to reduce their tax bills very substantially.
These tricks are not available to most ordinary Americans or small corporations.
Thus on the one hand, we are not getting much revenue.
On the other hand, we are rewarding clever tax avoidance and giving larger corporations a competitive advantage. Also there is continued incentive for large corporations to "purchase" from Congresscritters tax advantages for themselves.
The federal government can try to keep up with and prevent some of these tax avoidance procedures, in some cases changing the tax laws or regulations. However, even if they are able to counteract some of these gimmicks, new gimmicks will be invented. With continued globalization, we are fighting a losing battle.
I am sorry to conclude, that the best thing is probably to declare this war lost.
A proposal below the fold.
1. Eliminate corporate income taxes.
2. Tax capital gains and dividends at the same rate as other income.
(No more "double taxation" argument.)
3. Increase FICA paid by employers.
(For example, 2% more of payroll, with half to Medicare and half to Social Security.
While you are at it, why not eliminate the cap on wages subject to Social Security tax.)
4. Eliminate the "independent" contractor loophole.
We want some employer to pay FICA for everyone.
(May need new laws, regulation and enforcement.
May need to have the self-employed pay both the employee and employer rate.)
While far from ideal, taken together I think this would be an improvement over the current situation, which is bound to get worse going forward.
Obviously, there are many details.
I am sure there is some version of the above that would score as revenue neutral;
that is not to say that it could not be designed to raise more revenue than currently.
Also I have ignored the probability of getting this through Congress.