You make a valid point....not all businesses are profitable every year.
My main point remains however...which is the efficient businesses pay more taxes, the losing businesses get tax carry overs with loop holes. The Bottom line tax is unfair to the more efficient businesses. It encourages corporations to spend money on unproductive items because they are tax write-offs.
Result is our corporate bottom line tax rate is higher than other countries. We must create more corporations who are efficient and thus can produce products at lower costs. That is the best way to create more jobs.
The top line based tax levels the playing field. May be we need an intelligent combination of the two to help new business start ups. But if your business is over 10 years old, and it keeps losing money, it only means the management is lousy.
As for Los ANgeles situation, that will never work. We can not have an island with higher tax than neighbors. It has to be nationwide. We lived in Vancouver, WA and we could drive across the Columbia river and buy stuff sans sales tax. That was a very unfair situation for businesses in Vancouver. ALl my favorite retail golf stores in Vancouver went broke!
Well that’s why I favor the FAIR tax. All taxes are bad of course. But some are much worse than others from an economic point of view. The FAIR tax makes much more sense than income taxes, corporate taxes, capital gains taxes, dividend taxes, inheritance taxes and other schemes designed to redistribute income and penalize job creators.
“We can not have an island with higher tax than neighbors. It has to be nationwide.”
Wow. Now you want to just toss out federalism. Unbelievable.