The corporate tax system is badly broken (“Tax lobbyists help businesses reap windfalls,” Page A1, March 17). The solution is simple: Abolish the corporate tax. If many corporations are not paying it, then it does not serve as a reliable source of revenue. If many fine minds are engaged in counterproductive legal and lobbying activities to reduce taxes, a better use could be made of their talents.
The corporation tax should be replaced by a financial transaction tax. Such taxes are being introduced in Europe’s financial centers, so such a tax imposed in the United States would be unlikely to result in a flight of trading to foreign exchanges.
A very small tax applied to the multitude of financial transactions would generate the funds to replace the lost corporate taxes and might even reduce the speculative frenzy that sometimes inflames stock and bond markets.
The writer is professor emeritus at the Rotman School of Management, University of Toronto.