Someone suggested last week that instead of taxing corporations we

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4. they should extend some of the state tax principles to federal taxation.

if you earn money in one state but live in another, generally speaking, you pay taxes on your income in the state where you earn it. then you report ALL your income to the state you live in, and owe taxes based on the entire amount, but with a credit for the amount you paid to the other state.

they should do pretty much the same for corporations at the federal level. corporations that either are incorporated in the u.s. or do business in the u.s. should have to report all their world-wide profit. they owe taxes based on the entire amount, with a credit for taxes paid to other countries.

this way they have no incentive to transfer profits around, no incentive to move their incorporation to a different jurisdiction, no incentive to park money overseas, no incentive to do anything other than normal business.