A lot has been made about the U.S. having the highest corporate tax rate in the developed world now. Rightfully so. There's not much reason for us to have a 40% corporate tax rate. It's too high, and the rest of the world is going the other way these days, actually lowering their rates. That's not all that needs to change though. The truth is, the corporate tax rate is virtually meaningless. Corporations basically don't pay any income taxes at all anymore, finding every loophole in the book. In fact, as you can see above, corporate tax revenues are on a permanent decline as a percentage of the nation's revenue. Now, as those revenues have fallen, our bills haven't. So, to a large extent, we have shifted the tax burden from corporations to the middle class. To an even larger extent, we've simply not paid the bills, and let it run in the red-ink.
Want to solve the actual deficit issue? Here's a great place to start. Lower the rates, end the loopholes, collect more and still not tax anyone out of the country. Makes sense to anyone sane. Maybe not to the clowns in the U.S. House though.
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