Zero Percent Corporate Income Tax

Governments try to gain favor with companies by giving generous tax credits if they locate an office or factory within their jurisdiction. This is often looked at as unfair because it only goes to big companies. However, the way to fix this is not to stop giving tax credits to some companies, but instead, to lower taxes for all companies... all the way down to zero.

Corporations aren't people and don't hoard money the same way. When corporations get money, they spend it on roughly 3 things: buy more goods and services, expand the business by hiring people and investing, or give money to people as compensation. The first 2 cases are good uses of money that will lead directly to economic growth and shouldn't be taxed.

The third case is when corporate profits become personal income, which is already taxed. The difference is that taxing at the corporate level is regressive, because it taxes all recipients at the same corporate rate, no matter their income. If you wait for the money to become personal income, it can then be taxed on a progressive scale.

In each case, it's better if the company spends its money on something other than corporate income tax.