[cuspycode]

> This would be regressive, though. Why not tax the individual via a progressive cap gains tax?

How would it be regressive? According to Wikipedia[0], most corporate tax rates are proportional (i.e. "flat"). Just replace that with an equivalent rate on payout of dividends. Capital gains tax for the recipient is an entirely separate question.

> If a company can't think of a good use for their profits, do we really want to force them to keep the money within the organization?

In such situations they can pay dividends of course, which are taxed in my proposal. The point is that there is no point in buying back stocks instead of paying dividends.

[0] https://en.wikipedia.org/wiki/Corporate_tax#International_co...