Governor Perdue proposes a cut on corporate taxes. That's the easy part.

Though many here disagree with me, I was glad to see Governor Perdue take the axe to North Carolina's corporate income tax rate. She proposed cutting it from 6.9% to 4.9%, and as far as I'm concerned she should have gone all the way to zero.

By dismantling that tax structure, we could finally begin the long and essential process of revoking corporate personhood, thereby eliminating rights and privileges that are enjoyed by businesses, but not by ordinary citizens. In addition, the elimination of corporate taxes would forever get North Carolina out of the incentives business, where we attempt to lure commercial interests by promising them taxpayer subsidies.

What Perdue hasn't done yet, however, is offer a plan for making up for the shortfall that would be created by the cut in corporate taxes. The appropriate solution there, of course, is to raise income taxes on multimillionaires, and to tax investment earnings exactly the same as we tax salaries and wages.

I offered a specific plan for doing just that back in December. It's time to make it happen.

Comments

I'm no longer a business owner

I'm no longer a business owner (unless you count losing money at BlueNC as being a business owner), so the cut doesn't affect me one way or the other. In a good year, however, I might make enough money freelancing to qualify for top-tier tax rates. I know plenty of wealthy people (mostly Democrats, of course) who agree with me that raising taxes on those most able to pay is a good and proper path forward.

I'm not so sure

If this reduction was a result of an overall revamping of our tax code, including the closing of loopholes tailored for specific companies or sectors, I would look more favorably on it.

But as a stand-alone move, it's going to further erode our revenue base, making it harder to do all those other things that have made us attractive to companies looking to relocate.

They shouldn't have the rights of real people

Good point.

This issue reveals a fundamental flaw in our system of government. Corporations have amassed a stunning level of power and influence, and are systematically assuring their continuing dominance by hijacking institutions for their financial advantage. A vicious or virtuous cycle, depending on your perspective.

People cannot compete with corporations when the playing field is so far out of balance. We see this problem every day.

I don't want corporations paying taxes in order to buy the same rights that human beings have as individuals. Corporations should have no rights whatsoever.

Corporations and Responsibilities

Corporations benefit from state grants of the privilege of limited liability. In exchange for that grant of privilege, the citizens of the state should get something. As it is, corporations become a dodging of social obligations and in the not too distant past were a scheme to reduce personal income taxes. The state should not have to use tax loopholes or low taxes as sweeteners to attract and keep businesses. Superior infrastructure that competitively lowers the cost of doing business for all businesses is a much more appropriate way to be business-friendly.

And what we've found is that the private sector is lousy at providing infrastructure available to all people and businesses. As a recent example, look at what has been happening to "net neutrality".

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