Obamanomics: Employment In U.S. Lags Where It Was In 2007

If its legal under the current tax codes then they are not cheating.

You may not like the system or how corps going about beating it but its the system not them.

REFORM THE CODE

Liberals.

Yes, 'liberals' created the tax system.

As to your 'simplified tax system,' Company A pays 10% or 20% of what?

Since you are going to answer 'income,' how is income determined?

Since you are going to answer 'by revenue,' how does one use losses in such determination and since losses are essentially 'deductions,' how is this going to work?

Notice how you couldn't quite answer the question. Let me ask again.

If you are using 'gross revenue' to determine a tax basis, what is preventing a company from decreasing that revenue with investments, costs, expenses, etc.?

I'm not suggesting there is anything wrong with that, but it highlights why the answer isn't simply 'taxing income.'

Most people also dont have 100's of millions in tax liabilities either....you mentioned something about scale before?

A person hires a CPA to minimize taxes - a corp has a staff of CPA's to to the same.

Go ahead, tax companies to oblivion and let me know how it works out.

I don't think you are understanding the delemma unless, of course, you are suggesting that a business only pay taxes on total gross receipts.

Do you realize such a plan would destroy any business?

So wait....what exactly are you saying should be taxed? Income? Profits? Gross receipts?

Let me give you an example of the problem with taxing straight gross receipts.

Company A builds high end vacuums. Company B builds low end vacuums. Each company has the same profit margin, each has the same number of employees with salary, each has the same costs. Each sells the same amount of product.

Under the plan of taxing gross sales receipts, company A will always pay more taxes, creating a disincentive for better product.