The best way to use tax law to improve the economy is simplification and fairness. Tax all income the same! For corporations, get rid of tax "brackets" – instead, tax at one corporate rate; then eliminate Chapter S status; Personal Service Corporations status; and consolidation of multiple companies on one return. This would increase revenue by disallowing the offset of one company's income with a loss from a money-losing one, while decreasing the tax-dodging moves inspired by having more than one tax bracket.
For more simplification, change the definition of "taxable income." Try eliminating tax loss carry-back, but make tax loss carry-forward go on until offset by profit. Also eliminate deductions for meals & entertainment. And delete deductions for state and local taxes; income should not be treated differently based upon the residence of the person (or location of entity) earning the income.
See more ideas at www.ComingTogether.info.
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