I have trying to think of a corporate tax plan that would make sense and be fair, as well as encourage corporations to live up to their good corporate citizenship responsibilities and moral obligations
Lets say you start out with a base tax rate for the purposes of this exercise of 50%. The same rate applies if you are fully domestic, multinational doing business in the US, or a mailbox in the Caymans
You get points for
1. Creating Jobs in the US
2. Investing in facilities in the US
3. Investing in capital equipment in the US
4. Increasing energy efficiency, reducing energy consumption
5. Implemeting quality and or safety programs
6. Worker education programs
7. providing health care benefits
8. Investing in US R&D
9. legitimate non denominational/non political charitable contributions
You deduct points for
1. Closing facilities
2. Offshoring jobs
3 EPA violations
4 OSHA violations
5. Excessive executive compensation
6 Windfall profits
7 Corporate scandal/malfeasence convictions
8 known illegal immigration hiring
The total number off points would then be applied to a weighted scale to determine what amount of tax break the company qualifies for. Small buinsess could get exemptions similar to child tax credits if they are under a certain size to justify the above point system.
So lets say
You created jobs, provided good health care, implemented green technologies, bought some new equipment and so forth, but you also closed a plant, and the CEO got caught with his hand in the cookie jar and there was an ICE raid in one of the facilities
The point total on the weighted scale lets say comes up to 50% - so the company pays 50% of the tax rate
Thoughts?
Patriot Employer Act of 2007
I don't think anyone has raised the corporate tax rate to 50% in proposals but a much more modest, 1% tax credit was introduced and believe it or believe it, corporate lobbyists went nuts in opposite.
Patriot Employer Act of 2007
I think it's a good idea. There are so many loopholes in the corporate tax code to pay zero taxes plus move jobs, capital around the globe, a restructuring to have them move capital, jobs, to the United States is in order.
What I find interesting is how their hordes of lobbyists hate these ideas...and since the taxes are the same, there are clearly other reasons multinational corporations want to move capital, jobs, investments around the globe vs. into the U.S.
What the buzz phrase "remove tax incentives to offshore outsource jobs" from the campaign is simply not nearly enough.