Think Progress reports: former governor Sarah Palin called for the complete elimination of the federal corporate income tax during a speech in Iowa this past week. “This is how we break the back of crony capitalism because it feeds off corporate welfare, which is just socialism for the very rich,” she said.
During an interview on Face the Nation, presidential hopeful Michele Bachmann was asked by Bob Scheiffer if she was open to such a radical move. Bachmann replied that she is “open to having that debate,” suggesting that move to some other tax system could allow for the elimination of the corporate income tax.
Scheiffer: Congresswoman, what I asked you was would you go as far as Sarah Palin and eliminate all corporate income taxes?
Bachmann: Well, of course to do that we’d have to have a fundamental restructuring of the tax code. What we would have to do then is rejigger other elements to define revenue and what revenues would be needed to the economy. We could go that route. If we went that route, we’d have to have a fundamental restructuring of the tax code. I am open to having that debate, and as a former federal tax lawyer, I’ve dealt with whether it’s a national consumption tax, a flat tax, or some variation of the current system. This is what I do know. It needs to be simplified, it needs to be fairer, it needs to be reduced. What we do know is that the current corporate tax rate is killing job creation.
Scheiffer: So you could see a way to do that? You’re not ready to just say ‘yes, I’ll do that’ but you could see by making other adjustments, a way to eliminate corporate taxes?
Bachmann: It would be possible if we have a fundamental restructuring of the tax code.
Think Progress’ video here:
Tax cuts, which hindered our economic recovery efforts because they were financed through our national debt, will not get us out of our economic recession. They will not create jobs as they do not address the employment or production issues.
A National Consumption Tax will drive up retail prices for consumers and have a devastating effect on the retail sector.
A Flat Tax is an income tax system in which everyone pays the same rate, regardless of their income. The Flat Tax proposal also eradicates all deductions, but exempts capital gains and inheritance taxes. This proposal does nothing to address the growing income inequality, thus the effects will also promote further inequality.
But what is most disconcerting is Bachmann, the welfare queen herself, is open to such debates. She has already demonstrated her lack of competency over the national debt ceiling. She believes the procedural vote to raise the debt ceiling is not acknowledging the already approved spending, but rather offers a “blank check” for new spending. Her comprehension and intellect leaves a lot to be desired and offers a lot to be fearful of.