[coredog64]

> The problem with not taxing corporations is the rich can use corporations as a tax free saving vehicle.

I think this is more myth than reality. The IRS has a very good nose for finding people who are attempting this particular tax avoidance strategy.

[danieltillett]

Yes they do now, but if you stopped taxing corporations then it would be a lot harder.

The system we use in Australia is quite good. Corporations pay income tax, but any tax paid is passed onto the shareholders in the form of a tax credit (franking credits).