Federal revenue has basically flatlined at $3.4 trillion since 2015. Corporate income tax generates under $300 billion per year. Amazon boasts over $20 billion of cash earnings and pays no U.S. income tax. As the Institute on Taxation and Economic Policy points out, “Just five companies — Bank of America, J.P. Morgan Chase, Wells Fargo, Amazon, and Verizon — collectively enjoyed more than $16 billion in tax breaks in 2018.”
Double taxation encourages corporations and individual owners to work to avoid paying taxes. Credit to taxpayers’ dividend income for income tax paid on the income of corporations will encourage more dividends. Corporate officers would make additional income by holding shares and receiving dividends. Limits on deducting bonuses and high salaries would encourage corporate officers to own shares for the dividend income. U.S. corporations would be valued on cash flow after capital expenditures to pay dividends.
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Federal revenue has basically flatlined at $3.4 trillion since 2015. Corporate income tax generates under $300 billion per year. Amazon boasts over $20 billion of cash earnings and pays no U.S. income tax. As the Institute on Taxation and Economic Policy points out, “Just five companies — Bank of America, J.P. Morgan Chase, Wells Fargo, Amazon, and Verizon — collectively enjoyed more than $16 billion in tax breaks in 2018.”
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Double taxation encourages corporations and individual owners to work to avoid paying taxes. Credit to taxpayers’ dividend income for income tax paid on the income of corporations will encourage more dividends. Corporate officers would make additional income by holding shares and receiving dividends. Limits on deducting bonuses and high salaries would encourage corporate officers to own shares for the dividend income. U.S. corporations would be valued on cash flow after capital expenditures to pay dividends.
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