This recent rush by US companies to move their mailboxes abroad for tax purposes–so called “inversions”–has led to an increase in calls to abolish the corporate tax. And, to be fair, those calls started long ago based in no small part on the extensive loopholes that plague the corporate code.
Still, while I’m not defending our current business tax code, as I argue over at the Upshot, I’m convinced it would be a big mistake to end it, as opposed to mend it. As noted in the piece, those who would scrap it propose other ways to claw back the lost revenue but I don’t think they would work. Thus, I view this idea as creating yet another avenue for tax avoidance among those with the highest incomes. And that’s a bad idea.
If you don’t have time to read it, just look at the awesome GIF that sits next to the piece. Tells pretty much the whole story.