Kicking around an idea for "fixing" US complex/abuse-prone partnership tax regime:
one Trade or Business tax that applies to all businesses, in whatever form incl. self-employment
C corporation law applies EXCEPT dividends not taxable
Rate equal to highest individual income tax rate
Everybody gets one layer of tax. Self-employed can get benefit of lower individual rates by paying compensation (deemed in case of sole prop) No basis moving or other shenanigans.
