Let's reduce the US Corporate income tax rate

There is much talk about increasing corporate income taxes (which represents about 9% of all Federal revenues). But consider that today the amount that we collect (as a percentage after credits and special tax breaks) is close to the total amount collected in other countries. How about this proposal: Let’s make the corporate tax rate (foreign and domestic) a flat 10% (instead of the nominal 35% today). You get zero tax loss carry forward. If you lose money one year you eat it. If you make money the next year you pay 10% of your profit (sorry General Electric). Very simple and we will spend far less on tax accountants and attorneys.

This should give an advantage (on one of many factors) to US companies and should result in more jobs being created in the US rather than abroad. But let’s make up for lower tax revenues on the back side. For individuals let’s increase both long-term capital gains rates and corporate dividend rates from 15% to 22%.

The value of the S&P and the Dow would immediately go up on this news. This would result in optimism not seen in years and this alone would translate into optimism of CEOs deciding whether to open a new plant or not in the US. We would collect more revenues from these categories (in total) and we would create far more jobs.