Corporate income taxes cost U.S. companies even more than the 35% assessment would suggest, writes Megan McArdle. The tax creates an enormous compliance burden, can mean less compensation for workers and typically brings in just 15% of the nation's tax revenue. The solution? End the corporate income tax and replace it with a higher tax rate on capital gains and dividend income -- a move that would bring in just as much revenue, but be far less likely to hinder businesses.

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