American Civility

First, we will end double taxation of income. This is the most important benefit because it will help capital formation, which our economy needs at this time. Banks will lend to businesses because they will have more cash flow to pay the loan back. Businesses can raise capital more easily in the public markets too, and capital will flow into the country from overseas. The benefits to rejuvenate our economy are manifold.

There are many other benefits as well:

• Bailouts will be more difficult to justify and may not be necessary.
• Subsidies, R&D credits, accelerated depreciation, and other fine tuning that Congress offers businesses in the tax code are no longer needed. This will result in making government smaller.
• The complex corporate tax code will disappear and with it all of the tax avoidance schemes that corporation pay tax accountants and tax lawyers to devise.
• No capital gains tax will be needed, as all income will be taxed at the taxpayer’s individual earned income rate.
• With a simplified tax code in which only personal taxes are treated, the IRS will shrink.
• No corporate lobbying will be permitted, nor will much of it be necessary. Power in our democracy will be returned again to citizens petitioning their legislators who will not be distracted by large corporate lobbying teams and money.
• With corporations not able to sue and without liability for corporate criminal intent, there will be fewer lawsuits.
• We will see an immediate increase in value in 401(k), IRA, 529, and other savings accounts holding stocks because these deferred tax plans will reflect the new increases value of the cash flows of the businesses whose stock they own.
• The stock market will see an increase as new corporate valuations are reflected in the stock price.
• Corporate accounting will be more transparent, possibly eliminating the need for Sarbannes-Oxley.