This effectively removes income tax entirely for rich people. I can simply create a corporation and never take money out of it. If I need to spend money, I ca

This effectively removes income tax entirely for rich people. I can simply create a corporation and never take money out of it. If I need to spend money, I can just borrow (whether directly from the corporation or indirectly). Even if you remove the latter loophole somehow, you're effectively only taxing consumption, which is highly regressive.