I like your thinking, but there's a sliding scale (15%-35%), just like personal income tax, so that smaller businesses don't get hosed.
Theoretically it would also be easy to game payroll and income taxes this way. You could essentially file articles of organization for a corporation with you as the sole shareholder, and have your employer pay your corporation your wages, instead of you directly.
When it comes time to take money out, you pay a fat dividend with 15% dividend tax rate, instead of 35% income tax rate. There are of course some exceptions to this and it isn't possible in some states, but it would be possible.
> When it comes time to take money out, you pay a fat dividend with 15% dividend tax rate, instead of 35% income tax rate.
If we were to eliminate the corporate tax we'd need to simultaneously eliminate the preferred tax status of qualified dividends and long term capital gains. We'd also need to crack down on wage substitutes (aka fringe benefits).
Theoretically it would also be easy to game payroll and income taxes this way. You could essentially file articles of organization for a corporation with you as the sole shareholder, and have your employer pay your corporation your wages, instead of you directly.
When it comes time to take money out, you pay a fat dividend with 15% dividend tax rate, instead of 35% income tax rate. There are of course some exceptions to this and it isn't possible in some states, but it would be possible.