Corporate Taxes

Reading Barron`s magazine I note a push for reducing or eliminating the corporate tax for all the obvious reasons. Let me add efficiency as a not so obvious a reason. The corporate side has an army of expensive lawyers and accountants battling an expensive IRS bureaucracy. The battles rages at great cost and is pure consumption.

Inefficiencies create tax avoidance schemes which keep capital and job creation overseas. It builds a cadre of cake eaters in the economy. Many are Wall Street financiers who create un-economic tax avoidance instruments.

Legislators under the guise of fairness have a way of making fund raising complex. Complexity generates inefficiencies and inefficiency then creates special interests which makes it unfair again.

As a libertarian I recognize that the government has to raise revenues so that it can provide essential services such as a justice system, police and defense. The old fashion way was with import duties. I submit to you that eliminating the corporate tax and in compensation putting in a $100 a barrel oil import tax would raise revenues and repatriate capitaL and jobs. It would be unfair at the beginning, Texas oilmen will be thankful, but less so as time goes by as alternative energy develops a following. Similar to the Constitution`s command structure there is less micro managing and more sweep with this swap of inefficient with efficient taxing.