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.