The Seattle Times today has an editorial about the ongoing spat between the US and the WTO over a portion of the tax code which gives some sort of tax break to businesses that export their products from the US.  Here in Washington, Boeing is a big beneficiary of this little segment of the tax code.  But, European countries don't like it, calling it an unfair subsidy, and the WTO agrees with them.

But Congress likes being able to give this benny to exporters.  So, every time the WTO says "You can't do that," Congress fiddles around the edges of the law, and, in effect, says "How about now?"  Which results in the WTO saying "No, you still can't do that."  This has been going on since 1997.

The gist of the Times is that Congress should stop fiddling around the edges and fix the problem once and for all.  Of course, they don't actually give any suggestions, other than "something our exporters and the WTO can both live with."

Well, here's a radical thought?  How about we simply eliminate all corporate income taxes, plus any excise taxes placed specifically on exported goods?  Yes, the Euroweenies would still cry foul, but I don't think the WTO could find that we were unfairly subsidizing export products.

Yes, this would definitaly make the Democrats and thier tame media shills howl and shriek over "Corporate giveways."  But what it would actually do is reduce costs on just about every kind of goods and services for American consumers (read: taxpayers.)  That's because businesses don't actually pay taxes.  They're just intermediaries in passing the tax money from you, the taxpaying consumer, to Uncle Sam.  The taxes they "pay" are included in the price of everything they sell to you, increasing that price.  Without the taxes, prices would drop, leaving consumers with more money to spend, resulting in more overall economic activity, and, in the long run, increased revenues for the government.  (Not that I advocate giving more money-and thus more power-to the .gov, but it counters the "What about the defecit?" argument.)

Eliminating corporate taxes would also reduce prices by eliminating, or at least greatly reducing, the massive hordes of tax attorney companies currently employ in order to comply with the insanely complicated tax code while minimizing their exposure to paying taxes.

And finally, eliminating corporate taxes would bring all those so-called 'Benedict Arnold' corporations, whose headquarters have fled the US for tax reasons, back home.  And they would bring plenty of overseas companies with them.  Which means more jobs for Americans.

Somehow, though, I don't think that's the solution the Times is looking for.