Re: Just get rid of corporation tax
The first step forward would be to simplify or permanently eliminate most taxation. After all, how many different taxes do we really need? Do floor space and window taxes really improve the poor working man's prospects? I don't think so.
Corporate tax inspires massive efforts and expenses in tax avoidance while needlessly complicating the rules for everyone. In the end, "modern" tax systems are an opaque, unevenly applied clusterf*k which leaves individuals at the mercy of direct and indirect taxes enacted to make up the shortfall.
Joe Blow and the corner street shop owner simply can't afford high priced tax lawyers and accountants. Thus they get permanently screwed and also pay 20 % VAT on their remaining disposable income.
When taxes get too high, big companies simply move on after firing everyone. How long will this work? There must be good business reasons for 12 of the top 13 internet companies to have their EU HQ in Ireland. It certainly isn't for the weather.
Not only do these corps pay less tax, they aren't constantly pilloried and slapped across the wallet with increased social costs and excessive labor regulation.
Remember Producers = Predators, Consumers = prey.
When the prey diminishes, eventually the predators do also.
And in latest news, Africa's economies are now growing faster (in percentage terms) than those of the developed West. The Ivory Coast grew its economy by nearly 9 % last year.
Whether we like it or not, lower taxes and lower salaries are still engines for growth.
High taxes and low salaries are not. Ask Adam Smith.
I believe we could all use a bit more growth right now.
Unfortunately, if your business takes on the government as a 33 to 50 % partner, without providing the corresponding investment, that can become challenging, to say the least.
Perhaps it is time for a new rulebook.