I wonder if instead of trying to get US based corporation to pay income tax...

[WCGreen]

Why don't we charge them a fee to do business in the US, maybe even to each state and municipality. The fee for doing business would be based on last years gross income earned in the US, in the state and in the various incorporated municipalities.

They turn in end of year stats, write a check and then you are done with it.

Just a thought.

[CaliforniaPeggy]

1. Sounds like a good idea...

It's simple enough.

I wonder, though, how the corporations would like it...

Don't they prefer things to be complicated so that they can evade the taxes, and have it not be obvious?

[WCGreen]

2. They could get rid of Lawyers and Accountants that they use to

avoiding paying income tax...

[CaliforniaPeggy]

3. What? And throw all those good folks out of work?

But of course, you're right...

Anything to help the bottom line...

[Marie Marie]

4. These greedy mofos would gladly spend 5 million to avoid paying 1 million in taxes.

It's all just a game to them.

[taught_me_patience]

5. Cali corp fee is $800

pretty steep for small businesses.

[WCGreen]

14. It's based on Gross Income from what ever the business...

All forms of would be taxed the same rate.

Look, at the very least, it would cut down on accounting fees.

[taught_me_patience]

6. Basing it on gross income is nuts

gross income has nothing to do with profits.

[jtuck004]

8. Guess what your corprate taxes are based on in Washington State? n/t

[Hoyt]

7. Sounds similar to income tax.

[WCGreen]

11. It's an income tax per say....

But rather paying or the privilege too do business in the USA.

[quakerboy]

9. I believe they do basicaly that, in many places

In Portland, OR, I believe it is 2.2% of net.

But here's the thing. They will just offshore it. If you make your product in China for 2 cents, then your Chinese branch sells it to your US branch for $30, and then your us branch sells it for $32, your local net is only $2 per, minus expenses. My understanding is that they already do just this.

But if you go gross, you basically eliminate any low profit margin ventures.

[WCGreen]

13. I they sell stuff or provide services or earn rent, it would all go into mix.

It would actually lower taxes from thousands of business who don't qualify for all those loop holes in the Income Tax.

[Progressive dog]

10. They could call it a sales tax. nt

[WCGreen]

12. It's not a sales tax...

It would be based on Gross Income. It would include interest earned, dividends earned, capital gains so it wouldn't be a sales tax.

[Progressive dog]

15. gross income is mostly sales for corporations

that make stuff.