If you want to tax corporate activity, the best (most consistent) way would be to eliminate corporate income taxes and tax capital gains as regular income. It w

If you want to tax corporate activity, the best (most consistent) way would be to eliminate corporate income taxes and tax capital gains as regular income. It would serve multiple causes: (1) Instead of spending inordinate resources in tax avoidance schemes, companies would have the freedom to focus on investing human and financial capital in serving customers by providing better, cheaper products and services. Remember, the cost of those tax avoidance schemes are embedded in the prices you pay for goods and services. (2) Taxes would only be due when gains are realized, thus allowing compounded growth to further spur the economy; (3) It would raise the effective tax rate of individuals who receive a large portion of their income from capital gains (something that seems to really bother those who worry about such things; (4) It's a more consistent approach to taxation. Today we are taxing the owners of a company's stock both within the corporation's income structure and then again when income and growth is distributed to shareholders as dividends and capital gains, respectively.