Most people I know debate whether taxing a corporation more is good or bad, or whether giving corporations tax breaks is good or bad. Corporations pay very high tax rates. The fact is that taxing corporations at all is bad for everyone.
What is a corporation, after all? A corporation is an entity funded by investors and lenders, run by managers in charge of creating a profit for the investors and repaying the lenders by creating a product or providing a service for a group of consumers. In a legal sense, a corporation is a distinct entity, but in a practical sense it is a group of people. It is also an employer of people in most cases.
What effect does taxing a corporation have on the economy? First, it reduces the capacity of that corporation to employ people because of the reduction of funds. It also reduces the ability of that corporation to research new products or improve existing ones. Worst of all, it forces the corporation to raise prices to compensate for the reduced revenue. What happens when fewer people are employed, less product development occurs, and prices rise? It hurts the poor, and creates more poverty. Those with less income are less able to afford basic goods and services, and with fewer people employed there are more people who have less income.
So, in short, a tax on corporations is the most regressive tax around. A regressive tax is one that taxes the poor more than the wealthy. Another example with be any form of sales tax not refunded or reduced for the poor. Corporate taxes have the same effect because they create inflation through the ideas mentioned above, which is just one more reason they should be unilaterally repealled and the FairTax should be adopted. By taking the inflation out of the market, taxes can be paid in a smarter way while more jobs become available, more research is done, and prices go down for everyone. The FairTax represents a win-win that both political parties should be falling over themselves to pass.