The U.S. corporate tax code is ripe for bipartisan reform—the U.S. has the highest corporate tax rate of any OECD country but collects some of the lowest federal corporate tax revenues as a share of GDP.
A low-rate flat tax on the broad base of business value added, with minimal deductions, exemptions, exclusions or loopholes, would collect the requisite revenues while impeding prosperity the least. A low tax rate would give businesses little incentive to evade, avoid or otherwise not report taxable income.
A lower U.S. corporate tax rate would lead to improved equity valuations by way of more companies locating in the United States, the companies that are here being more profitable, and increased employment leading to more money flowing into the stock market.
