I disagree. I think there's a multi-pronged, not-necessarily-partisan critique of corporate income taxes.
These taxes are inefficient: They're difficult to collect. They disadvantage small companies that can't afford costly tax minimization strategies. They encourage big companies to spend money on non-productive activities (offshoring, shell games, etc.) The point of taxes is to raise money for the treasury, not stick it to the man. Moral indignation doesn't put bread on the table, so if we can collect by easier means, we should.
Corporate income taxes are a big part of the rationale for the tax treatment of capital gains. The money has been taxed once, so taxing it at standard rates amounts to double taxation. There's an argument to be made for abolishing corporate income taxes and treating capital gains as ordinary income. Since the returns on capital outpace the returns on labor, in the long run wealth accumulates with capital and reinforces inequality.
> Since the returns on capital outpace the returns on labor, in the long run wealth accumulates with capital and reinforces inequality.
Also, capital-derived income scales far more than labor-derived income, with far lower overhead. This isn't just in the physical domain, but also the time domain. This presents interesting tax and industrial policy questions on whether or not to treat large-scale capital-intensive organizations the same as labor-intensive organizations.
These taxes are inefficient: They're difficult to collect. They disadvantage small companies that can't afford costly tax minimization strategies. They encourage big companies to spend money on non-productive activities (offshoring, shell games, etc.) The point of taxes is to raise money for the treasury, not stick it to the man. Moral indignation doesn't put bread on the table, so if we can collect by easier means, we should.
Corporate income taxes are a big part of the rationale for the tax treatment of capital gains. The money has been taxed once, so taxing it at standard rates amounts to double taxation. There's an argument to be made for abolishing corporate income taxes and treating capital gains as ordinary income. Since the returns on capital outpace the returns on labor, in the long run wealth accumulates with capital and reinforces inequality.