Dr. Martin Hash Podcast

Some things are so familiar we overlook their elegance: case-in-point, business is the perfect economic machine. Business allows for commerce to flourish, creates jobs, inspires innovations, and fuels an economy. The more productive business is, the better off society is. However, business is also an easy target for politicians & demogogues. It's mostly immune to attack, and doesn't fight back on a personal level but it doesn’t make sense for government to tax business, putting a damper on the engine that keeps it all going.

Since taxing business is counter-productive, instead tax the people who own the business, not some imaginative legal construction that enhances our lives. Make businesses pay all yearly profit to their owners then tax the owners with a progressive Income Tax. As usual for pass-through taxes, use quarterly withholding so that the income cannot escape the country to foreign owners. Additionally, businesses don't need to accumulate money, they can operate from bank line-of-credit, use private loans, or sell stock. It's good for the banking system, and business can't hide their income in tax havens overseas. It also gets rid of the ridiculous double-taxation on dividends.

Taxes should be on people because people ultimately get the benefit, and businesses certainly are not people.