Comment by stephen_cagle

I always wonder when reading about things like this, and had a fun dinner discussion about it a while ago. What would happen with the following instead?

1) Remove all tax deductions entirely.

2) Have no corporate income tax at all.

3) Tax cash and cash equivalents at a very high rate (20% ???) per year, tax other assets at a lower rate (5%).

Basically just have taxes that are high enough to encourage productive use of all assets (above inflation), and to really really encourage companies not to horde capital. Seems much simpler.

I might also be convinced that taxes shouldn't even kick in until a corporation is above a certain size (5 milion USD?).