that is an idea that I've been floating for a while, unfortunately people who don't understand economics and rely mostly on their feelings don't approve, and those are the majority of votes hence the politicians don't want to commit political suicide by promoting something like that.
Think about it, a no tax corporate tax, yet taxing the recipients of dividends and distributions would:
* eliminate tax heavens
* foreign companies would come to the US
* stimulate the economy
* benefit the shareholders at large
Of course the shareholders would pay taxes, and distributions to foreign entities could be taxed at the source.
This is how corporate taxes work in Estonia. There is no income tax, but dividends/distribution is taxed. I think it's great overall.
However there are some loopholes that companies still figure out. In Estonia's case we have big international banks that found a juicy loophole. The local Estonian branches pay no corporate tax, but they also never pay dividends. Instead they give out a no interest loan to their foreign mothership and have no intention of ever getting it back. This loophole has since been patched, but it shows that companies will still hire teams of lawyers to find new loopholes to not pay a single cent.
Think about it, a no tax corporate tax, yet taxing the recipients of dividends and distributions would:
* eliminate tax heavens * foreign companies would come to the US * stimulate the economy * benefit the shareholders at large
Of course the shareholders would pay taxes, and distributions to foreign entities could be taxed at the source.
Easy, smart, logic.