eliminate the corporate income tax
Discussion recently initiated by Bruce, I believe.
Offset it with higher induvidual rates on high earners and repeal of capital gains preference.
One effect would be to totally eliminate any (rational) argument about job creation. You want to retain earnings and build a business, great. It would have to be coupled with a few mostly existing rules like passive income to keep everyone from using it as a shelter but basically little change to current law.
If I were a younger man trying to build a business, I'd be very ahppy with that and if I happened to reach the point where my effective tax rate was higher, say when I was paying myself $300K and being taxed at higher rates and retaining $300K of tax free earnings annually, well I'd gladly worry about that when the time came.
Of course there would be an avalanche of propaganda from ultra high earners as to why this would result in horrible, terrible things. And unfortuately a great number of people who have strong opinions about the state of the world are thoroughly innumerate in regards to taxes, business structures etc. ala' Joe the Plumber.
Also prevalent among the innumerate or those who use them is the notion that we must coddle the self esteem of ultra high earners or they will all have a hissy fit and quit working. As Piketty says, a lot of them don't work anyway, or at least not at anything productive. And anyway, three is some talented person willing to run a hedge fund or private equity operation at a 50% marginal tax rate.
As far as highly compensated corporates go, if they are worth say, $15 million a year in terms of "shareholder value" they are worth $18 million to compensate for the added taxation- the corporation would presumably have the money, being free of taxes. That assumes that they make money, which they ought to if they're paying the CEO that much although that is sadly not always the case.
Would also be some entertainers, athletes, boob surgeons, tort lawyers and the like affected. Too bad.
Also unfortunate that a significant number of people don't really want no steenkin' policy, they just want to kill the guvmint.