But there's a simpler way to tax those people then by taxing corporations and having corporations pass the costs along to them: You could just tax the people directly. Depending on who you want to pay, you could raise payroll taxes, or raise capital gains and dividend taxes, or raise income taxes. The problem is we'd need to increase those taxes by quite a lot: The corporate income tax is expected to bring in more than $370 billion this year.
My Wonkbook partner Evan Soltas has a nice overview here of the case for getting rid of the corporate tax. The question, then, is what to replace it with. I'd suggest increasing taxes on capital gains and dividend income, capping deductions for the affluent and instituting a progressively structured carbon tax. All these tax sources would be far more efficient than corporate taxes. The carbon tax would help us slow global warming. And it would be easy to maintain about the same level of progressivity that we now have in the tax code.
Jim Pethokoukis had an interesting post today on whether any Republicans readying themselves for 2016 will emerge with big, new ideas that revitalize the party. I'd love to see one of them steal this one.