It is no secret that the new Republican tax plan approved by our president and lawmakers was highly controversial. Many have been highly optimistic and would most likely take side with businesses and entrepreneurs who think we are taxed too highly. Others would say that our debt and spending bill are much too large to handle this large of a tax cut and if anything we should be temporarily raising them to get us out of our situation. These are not unreasonable thoughts but I would like to take a less traditional approach to this issue. There is no reason why a corporation should pay a tax for being a corporation, especially considering this directly affects the people who are working for that corporation.
Income taxation in the United States were first enacted in 1861 (Pollack 1). The reason it was put into place was to raise revenue to supply the war effort of the American Civil War. It was declared unconstitutional only 1 year later and the tax expired. In 1894 a corporate tax was enacted to attempt to reduce tariff rates and was pretty much immediately held unconstitutional as well (Pollack 2). In 1909, Congress put an excise income base tax on corporations (Ourdocuments.gov). Later, this would become corporate provisions on income tax, the taxes grew with revenue laws over time and was slashed with the previous tax cuts bill. At one point this had grown tax revenue to a rate that would have seemed efficient enough to keep in place. But over time we have seen other countries appeal to our firms as more desirable business locations and that has hurt us more than it has helped. Legislators should phase out the corporate income tax entirely to increase national and international business competition, benefit employees and secure jobs within our borders.
.At one point the corporate income tax accounted for about 30% of our federal revenue (Reid). Over time corporations found ways to avoid paying these taxes. More than half of all our corporations were successful with their quest to save a little bit of money. As a result, the revenue that the tax holds went down to about 9% (Reid). This is ironic considering that corporate profits are at all time highs, but some