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Article: Time to End the Corporate Income Tax.(Brief Article)
- Article from:
- Reason
- Article date:
- August 1, 2000
- Author:
CopyrightCOPYRIGHT 2000 Reason Foundation. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The corporate income tax--a feature of the U.S. tax system for several decades--is a natural part of a tax system that seeks out income and taxes it wherever it is found. Such a system is flawed, however, and the corporate income tax is one of its most serious flaws.
Through a corporation, large groups of investors can pool their resources, share their risks, and adjust their investments through stock market trading. Although partnerships are a less flexible way to organize a business in that they rely on a relatively small number of investors who can adjust their share only through costly negotiations, their small size creates more accountability. The choice ...