A Minimalist Approach to Corporate Income Taxation

Abstract:     
Under current law, the corporate income tax is unlikely to burden the returns generated by most productive assets. However, it is likely to burden the returns generated by at least some self-created intangible assets. Since self-created intangible assets are under-taxed relative to most other productive assets, this tax burden is entirely appropriate. Accordingly, Professor Schlunk argues that the focus of the corporate income tax should be sharpened: such tax should never be imposed on the returns generated by assets other than self-created intangible assets, and it should always be imposed on the returns generated by self-created intangible assets. This paper suggests a way in which this focus could be implemented.

Working Paper Series