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If you eliminate the corporate taxes, and replace them with a sales tax, there are some advantages.

First, it means U.S. corporations are taxed less. That lowers their expenses. Either they can lower the price of goods (offsetting the sales tax), return it to shareholders, or use it to grow.

It also makes them more competitive in the global marketplace.

Meanwhile, we would pay the sales tax not just on items purchased from U.S. companies, but on EVERY item from all companies. So in effect it would be taxing foreign corporations for the business they do in this country. Again, helping U.S. companies who currently share the entire burden of taxes while the foreign companies skate.

There are problems with a national sales tax. It is regressive (probably not an issue amongst us here), and it is a new tax. But we are already paying the corporate tax through the price of goods and services.

I’m not saying I support this idea, just that I can see some positive effects. The negatives have been covered here pretty well.

First, it means U.S. corporations are taxed less. That lowers their expenses. Either they can lower the price of goods (offsetting the sales tax), return it to shareholders, or use it to grow.

They could. But I find myself lacking warm fuzzy feelings. They could also use the savings for Special Golden Parachutes, Bonuses, Travel Allowances, Company cars, boats and aircraft, and continue their Quarterly looting.

But they wouldn't do that.

No, they would lower the prices and return the money to Little People.

Sorry, forty years in Fortune 500's has left me a reformed optimist.

First, it means U.S. corporations are taxed less. That lowers their expenses. Either they can lower the price of goods (offsetting the sales tax), return it to shareholders, or use it to grow.

Apparently the only way we can get the ball rolling is to hand corporate a big ole bonus?