Income Tax

An Economist Blog post on why raising Corporate taxes won’t help workers or the deficit

Stop cheering, Keynesians

Because I know all you talk about with your friends are taxes

Waste: Federal Tax Paperwork May Cost More Than The Corporate Income Tax Collects

Earlier studies of the costs of overall tax compliance, the deadweight costs and sheer economic waste, postulated several percent of GDP, or hundreds of billions of dollars. Surveying such material I reckoned $329 billion as a placeholder for those costs, noting also that, assuming $47 dollars an hour for compliance personnel to deal with the 7 billion would be all it takes to reach that height (but costs encompass more than salaries, of course).

Note something interesting; that $329 billion exceeds the $321 billion that the Treasury Department reports as what is taken in by via corporate income tax receipts.

Corporate income tax reform is needed; it’s a priority. But the greater problems are over-regulation and too much paperwork and red tape. Simplification and common sense, all around, is needed.

So, let me get this straight.  We can net the government more by eliminating the paperwork and burden of regulations than they collect in corporate income tax?  So Corporate Income Tax is a net loser?

One more bit of information to have at your fingertips:

The individual income tax receipts component of all this is $1.394 trillion. The corporate income tax, meanwhile, was $321 billion (p. 5, Table 3).2014 Corporate Income Taxes vs Tax Paperwork

Just sayin…