>The proper corporate tax rate should be zero I actually suggest you do something that ends double taxation and the capital gain tax tier: http://en.wikipedia

>The proper corporate tax rate should be zero I actually suggest you do something that ends double taxation and the capital gain tax tier: http://en.wikipedia.org/wiki/Dividend_imputation http://en.wikipedia.org/wiki/Dividend_imputation This is why: >Elimination of Tax Incentives >It is also interesting to note that it was soon realised that the system eliminated to a considerable extent the effectiveness of tax incentives for corporations. If a corporation was given a tax break then its incomes thus released from taxation would not generate franking credits precisely because no tax was paid. In turn, this meant that the shareholders received fewer credits along with their dividends, meaning in turn that they had to pay more tax. The net result is that each tax break a corporation itself got was countered by a matching increase in the tax burden of shareholders, leaving shareholders in exactly the same position had no tax break been received by the corporation. Thus, to the extent that corporate directors acted so as to increase shareholder wealth, tax incentives would not influence corporate behaviour.