Steve Forbes’ Corporate Flat Tax Plan

September 16, 2005

Beginning on page 66 of Flat Tax Revolution, Forbes maps out his corporate flat tax plan. Here’s the highlights:

  • 1. All profits would be taxed at the rate of 17 percent.
  • 2. Companies could expense all investments – no more depreciation schedules.
  • 3. Corporate loopholes, all of them, would be abolished under the flat tax.
  • 4. Interest payment deductions would also be eliminated under the flat tax.
  • 5. Both limited liability companies (LLCs) and S Corps are compatible with the flat tax.
  • 6. The flat tax will let companies increase dividends and benefit shareholders.
  • 7. The flat tax would encourage greater transparency.
  • 8. The flat tax will only tax companies on the income they make in the United States.
  • 9. The flat tax would create a more receptive environment to free-market benefit plans.

2 responses to Steve Forbes’ Corporate Flat Tax Plan

  1. Hello,

    I recommend you check out http://www.fairtax.org. If you like the flat tax, then you should love the FairTax. Essentially, it is a 23% national retail sales tax on all new items. This proposal, which is in the house and senate as HR25/S25, will also abolish the I.R.S.

    There is a very good book written on the subject that you would find useful.

    Best,

    Jose Velez

  2. Nice post, thanks. Big fan of flat tax rate policies and practices. Flat tax on corporations just is not talked about enough. Eliminates funny accounting. Revenue-Cost of Goods Sold = Profit x Tax Rate = Taxes paid.