However, if you instead provide a dividends paid deduction, which is inherently largely self funding so long as you get rid of favorable rates on dividends and capital gains, the result is much different. Based on IRS and Federal Reserve data, using that mechanism to eliminate corporate tax could be accomplished for just a 7.5% incremental tax on individual income in excess of $500,000 a year, plus imposing a withholding tax to deprive foreign investors of the benefit and taking away the capital gains preferences, assuming that the current law phase outs proceed. That is VERY affordable, considering that the all-in effective tax rate on persons in the >$500,000 a year bracket would still only be about 34%, INCLUDING state and foreign taxes. It is foolish not to allow a dividends paid deduction. See http://www.sharedeconomicgrowth.org for further information.