Here is a pretty good article in my Taxes folder I think you should read. If you don't have time, I'll just paste the highlights of it:<quoted text> no there should just be a flat tax period. Not a "flat corporation tax". Most of them aren't even based in america.
" The problem with the corporate tax code is not what many think. Frankly, we can change the nominal tax rate to practically anything. It doesn't matter since hardly any corporations pay the nominal rate. What matters is this: Bring up the real tax rate (what companies actually pay) to support needed investments in productivity and competitiveness. Stop penalizing small business. And, end the gimmicks and loopholes that encourage investment in damaging business practices and obsolete industries."
Reforming the corporate tax code is the ultimate fix for the economy, Republican budget committee chairman Paul Ryan told CNBC on Friday morning. U.S. publicly traded companies pay more than their counterparts in most of Western Europe and more than China and Brazil, both at 25%; more than Russia’s 20% and India’s 33.9% statutory tax rate, according to RSM McGladrey, Inc., a tax consultancy. Within the advanced economies, the U.S. rate is one of the highest. But there’s a caveat.
Scholars have long documented that multinationals are adept at arranging their affairs to undo differences in taxation across countries. By shifting income from high-tax to low-tax countries through transfer pricing, using hybrid entities that are treated as corporations in some countries and flow-through entities in others, stripping profits from high-tax countries through intracompany financing, repatriating under favorable tax conditions, and other tax avoidance mechanisms, multinationals mitigate the impact of being headquartered in a high-tax state. Google’s famous rerouting its offshore rights to intellectual property through two Irish subsidiaries, a Dutch subsidiary, and a Bermuda entity, lowered its total tax rate on foreign profits to just 2.4%, saving $3.1 billion over the last three years, Bloomberg reported last year.
When it comes to the effective rate, U.S. corporate tax burdens are not the highest in the advanced economies within the Organization of Economic Cooperation and Development, or OECD. But it is also not the lowest.
The average effective federal tax rate is 28% for publicly traded C corporations, according to tax consultants at BDO in New York, and less for smaller businesses with revenues under $10 million that file as S-corporations, partnerships or as sole proprietors, according to the U.S. Small Business Administration.
Now using that average (even though there really is no average) corporations still pay 28% in federal taxes. I think that's very discouraging given the fact our neighbors in Canada are about half of that rate.