The US Corporate Income Tax: The Food Is Bad, And The Portions Are Too Small

Excellent chart from Chuck Marr at CBPP on the corporate income tax:

There’s no particularly compelling reason to want corporate income tax revenue to be a large share of GDP, but the point highlighted here is that in a climate where the country needs more tax revenue in the medium-term, there’s no reason corporate income tax reform should be strictly revenue neutral. The headline rates are so high, and yet the loopholes are so ubiquitous, that it’s very easy to design reforms that are both clearly pro-growth and revenue-enhancing, even apart from the fact that deficit reduction (at the right time) can be growth-enhancing.