Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
I'm going to crosspost what I wrote over at Open Left here.

Limited Liability Levy

Abolish the corporate income tax......

Keep on following.  

See the great issue with corporate taxation has been that they can shifts their profits overseas and declare bankruptcy (like Delphi)......

They can engage in creative accounting with tax credits so that they get money from the government........

And at the end of the day when the only liability that they have is limited to the assets that they own, even though they pay little or no taxes, and basically behave as anti-social little sobs.

So my suggestion?

Ditch the corporate income tax, it's shot through with loophole that allow companies to dodge their social obligations while sticking the public with the bill when they screw up.

Let's face it the chief benefit that the US government offers corporations is the limitation of liability, so let's recognize that the US government is in the insurance business.

And instead of taxing them, let's create a "limited liability levy" on corporate revenue, and let's be clear, this isn't earnings, this is money in hand they've gotten from their dealings.  No more of this turning a profit into loss through accounting tricks.

Charge a levy at 15% of gross revenue (again not profit) and use the spike in government funds to pay off debts, and look long term to creating universal healthcare and free higher education.

And if the corporations don't like that they've got to pay money for the privilege of having the government offer them insurance limiting their liability to funds invested, then let them try to find coverage in the private sector.

No private insurer can make that promise, and they would have to charge sky high rates if they tried.

Kill the illusion that the companies can get what they get from government in the market by letting them try.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg
by ManfromMiddletown (manfrommiddletown at lycos dot com) on Sun Sep 21st, 2008 at 11:48:09 AM EST
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