Corporate Windfall Profit Tax

Alright, so I have a relatively new theory, but I just want to throw it out there. I'm doing little more then thinking outside of the box, so hold the hyper criticism. I realize that the current corporate tax is broken, non-progressive, and often kills business both big and small. For several obvious reasons though, you can not simply tax a company based on base income. So here's my theory....

- Lower the corporate tax rate down to 35%.

- Install a double levy surtax.

- For every 5% of growth, add a 1% tax to the current rate.

- For every 5% loss in growth, subtract a 1% tax from the current rate.

- Have a tax ceiling of 15% on increased growth.

- Have a tax floor 10% down on subtracted growth.

- Every fiscal year, your current base income will be your new 35% rate.

Looking for feedback. This is one of my many homegrown economic systems, and I'm no master economist. The point of this, is to hit profit growth bursts, that the federal government otherwise never benefits from, while keeping failing businesses alive without substantial bailouts. I was previously disposed to targeting corporate growth, but a 1% taxation like this does little to actually break streams when compared to the 5% its being levied from.

So you want to tax business a rate based on the economy? How about you enlighten us on your obvious reasons, or are you busy starting more threads?

Hold the hyper criticism? You must be new here.

AliHajiSheik said:

So you want to tax business a rate based on the economy? How about you enlighten us on your obvious reasons, or are you busy starting more threads?

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I see no problem in making many threads, considering all mine have been massed in content. Are you, forgive my harshness........... offended by this poll? If so, than I think you should take your offending nature elsewhere, as you have already approached me in ill temper.

To answer your question, to a lesser extent yes. In times of economic turmoil, the corporate tax slightly regresses. In times of economic burst periods, it soars. In all honestly, this is nly a 1% levy for every 5%, so I don't see substantial harm to the economy. It resets every fiscal year, with a ceiling, so companies will not be screwed over.

azgreg said:

Hold the hyper criticism? You must be new here.

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I am indeed new here. This forum seems less active than other ones I have ventured in. Only here do to my tendency to get banned from every website I touch.

Csareo said:

I see no problem in making many threads, considering all mine have been massed in content. Are you, forgive my harshness........... offended by this poll? If so, than I think you should take your offending nature elsewhere, as you have already approached me in ill temper.

To answer your question, to a lesser extent yes. In times of economic turmoil, the corporate tax slightly regresses. In times of economic burst periods, it soars. In all honestly, this is nly a 1% levy for every 5%, so I don't see substantial harm to the economy. It resets every fiscal year, with a ceiling, so companies will not be screwed over.

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Making it impossible to predict a tax rate along with all the unpredictable risks in running a business seems unfair to me.

But as long as you feel better about expressing a less than fully baked idea, then more power to you. I see nothing as to what you think is "obvious".

AliHajiSheik said:

Making it impossible to predict a tax rate along with all the unpredictable risks in running a business seems unfair to me.

But as long as you feel better about expressing a less than fully baked idea, then more power to you. I see nothing as to what you think is "obvious".

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I love the fiery tempered ones. Although what's fair is not always what's best for the overall whole. It is unpredictable, but it ensures the economy is not effected in the long run. Its a home baked attempt to combat flaws in both regressive and progressive tax systems. Few questions....

How is the tax rate unpredictable? People are required to submit regular income/growth forms to the IRS and SEC.

How does this harm the business? Growth falls, tax rate falls. Growth rises, tax rate rises. All while allowing a 4% growth, with a current 5% corporate deduction.