Different tax strategy

The Democrats want to radically alter how taxes are paid by corporations in order to raise revenue. Sounds like a tax increase to me, but they're describing it differently, of course. They're closing tax loopholes.

Here's a better idea - eliminate all corporate taxes entirely and require treaties with foreign countries to do the same for American businesses in their countries. Even if the foreign countries did not follow suit, this would encourage growth in the U.S. economy and would result in incredible job creation which would in turn yield higher salaries, more spending and thus more taxes at all levels.

Taxation is obviously necessary to sustain our society. However, it should be set up to encourage economic growth and investment as much as possible which is why elimination of corporate taxes and shifting the tax burden to the tax payers - perhaps through a national sales tax on consumer items and services which excludes food and medicine - would more efficiently raise taxes while increasing incomes and creating jobs.

Democrats to close tax door
Financial Times

With one stroke of the pen, a change to tax laws can achieve improvements in a company's profitability that would take a chief executive years to accomplish through hard work.

Even the most innovative businesses are attentive to the earnings-enhancing potential of tax law. Microsoft ranks top among companies lobbying in Washington for tax advantages, employing 63 professional lobbyists to influence those who draw up the rules.

But a stroke of the pen can also undo years of careful planning, as many multinational companies are discovering amid a move on Capitol Hill to change the rules for taxation of capital flows between subsidiaries.

A pledge by Democrats in Congress to crack down on tax avoidance and to pay for spending measures as they are approved has put the practices of a range of international companies under the spotlight.

"These multinationals avoid U.S. taxation on their actual earning by siphoning off revenues by sending payments through U.S. tax treaties countries with low withholding rates, before they are forwarded on to the parent corporations," a Democratic aide said.