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Suppose the corporate income tax were eliminated and corpora

Suppose the corporate income tax were eliminated and corporate income allocated to shareholders on a pro rata basis according to their proportion of outstanding stock. How would such a change in tax policy affect the excess burden and incidence of the tax, assuming that all forms of investment income are included in a comprehensive income tax base?

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To start with, this would not be a good idea from the financial standpoint of the government because Corporations make up a high percentage of revenue collected by the IRS and state and local taxing agencies. Even if it were redistributed to shareholders, which is what we are seeing here, the ...

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Suppose the corporate income tax were eliminated and corporate income allocated to shareholders on a pro rata basis according to their proportion of outstanding stock. How would such a change in tax policy affect the excess burden and incidence of the tax, assuming that all forms of investment income are included in a comprehensive income tax base?

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