Just a reminder. Regardless of the rate charged - corporations do not pay federal or state income tax.
Income tax is a corporate expense – a part of overhead. Income taxes paid by a corporation are included in the price charged to customers and clients for goods and services. And it could also reduce the amount paid out as dividends to shareholders. So, the individual consumer/investor ultimately pays 100% of all corporate income tax either by increased prices or reduced dividends.
I have always believed corporations should have a “dividends paid” deduction – corporations should be able to deduct from taxable income dividends paid to shareholders. If this were instituted there would be no need for special lower tax rates for qualified dividends (although the lower rates would remain for long-term capital gains) – all dividends would be taxed as ordinary income – and really no need for Section 199a.
And, of course, all industry-specific or general corporate loopholes and special deductions and credits should be repealed.
Am I wrong in my thinking on either issue?