If tax laws are changed such that economic activity transacted within the US, among those present in the US, are taxed as being within the US, rather than using Double-Dutch, and Irish loopholes, to avoid taxation, then there's no need at all to reduce corporate tax rates. Rather, they can be raised to levels more consonant with where they were in the 1950s.
Taxes are a transaction fee. The benefits of corporate profits accrue most decidedly to those who own or participate in that profit stream: stockholders and banks, principally. Among whom you'll find an income and wealth distribution skewed remarkably upward from that of the population at large.
Consumption taxes are inherently regressive: the poor spend far more of their money on purchases. Without an offsetting credit, VAT only exacerbates the underlying inequity problem.
This is why it should be a progressive VAT. Essential goods have no to little tax (the same goods that say, food stamps would cover), consumer goods a higher tax and luxury goods the highest tax. Second-hand goods would have no VAT tax at at all, which is what low income earners should be purchasing in many cases.
Also, no tax system will solve inequality; the cause stems from other places (culture, education, government structure).
Comments
If tax laws are changed such that economic activity transacted within the US, among those present in the US, are taxed as being within the US, rather than using Double-Dutch, and Irish loopholes, to avoid taxation, then there's no need at all to reduce corporate tax rates. Rather, they can be raised to levels more consonant with where they were in the 1950s.
Taxes are a transaction fee. The benefits of corporate profits accrue most decidedly to those who own or participate in that profit stream: stockholders and banks, principally. Among whom you'll find an income and wealth distribution skewed remarkably upward from that of the population at large.
Consumption taxes are inherently regressive: the poor spend far more of their money on purchases. Without an offsetting credit, VAT only exacerbates the underlying inequity problem.
This is why it should be a progressive VAT. Essential goods have no to little tax (the same goods that say, food stamps would cover), consumer goods a higher tax and luxury goods the highest tax. Second-hand goods would have no VAT tax at at all, which is what low income earners should be purchasing in many cases.
Also, no tax system will solve inequality; the cause stems from other places (culture, education, government structure).