The result of “no corporate taxes”

Sarah Palin proposed eliminating all corporate taxes in her speech to the Iowa Tea Party today. This is HUGE. The ripple effect of putting this in place would affect a vast swath of corporate America, in addition to eliminating crony-capitalism.

Consider for a moment all those that would be affected by such a policy. Corporate tax attorneys, CPA firms and countless tax department employees would lurch to a halt in their jobs. The focus of countless corporate controllers would shift from tax avoidance to net income maximization.

Countless corporate lobbyists would be out of a job overnight. Their corporate benefactors would pull the plug on their funding immediately. The focus of corporations would turn away from Washington, DC in a heartbeat.

Companies that have relied on government largess to support their bottom lines would be horrified. Weaknesses in governance would be exposed overnight as the SEC would mandate that companies disclose any risk in their business plans beyond company guarantors. GM and Chrysler would suffer a major downgrade in their stock valuation because the federal government would no longer underwrite and support their operations.

In a word, the free-market would explode! Risk-taking would suddenly be in vogue again and entrepreneurs would be empowered to invest. There would be a massive shift of cash out of savings into new endeavors. Corporations would scramble to find fitting investments for their stockpiles of cash. The value of small companies would skyrocket as these investment dollars would be looking for a good return and compete for the best ideas.

The downside? Washington politicians would immediately demonize the idea as a major impediment to deficit reduction, as if they’ve ever cared about that in the past. The caterwauling about reduced revenues for Washington would be deafening! If such a policy was implemented, we would watch Washington pundits undergo convulsions as they began to realize how their lives would be impacted. There would be no incentive for ANYONE involved in business to pay attention to them.

Sarah Palin has opened Pandora’s box with her proposal to end corporate taxation. I am anxious to see the effects of her proposal on other Republican nominees, especially in next week’s debate.

While doing nothing but address a Tea Party event in Iowa, Sarah Palin has turned the 2012 election upside down. Now that’s what I call an unconventional campaign!

First Impression: Sarah Palin’s speech to the Iowa Tea Party

In what appeared to be a major outline of her policies, Sarah Palin dropped a HUGE bombshell on the current Republican field of candidates. She proposed an elimination of ALL corporate taxes, thereby removing all corporate incentives to cozy up to politicians.

Such a policy has never been proposed before but is a very simple, common-sense approach to defusing and eliminating crony-capitalism. Remove the incentive for lobbying for special tax breaks and you remove a corporations investment in those efforts.

Sarah went on to say that corporations should also be forced to live or die by their decisions without any government intervention whatsoever. I couldn’t agree more. I talked about Steve Job’s contribution on The Roderic Deane Show last week and the fact that his failures helped pave the way for his successes. This is the free-market at work.

Sarah’s speech is going to have a profound impact on the current Republican candidates. It will be VERY interesting to see if any of them attempt to co-opt her ideas. She needs to enter the presidential sweepstakes to bring her revolutionary and common-sense ideas to the forefront. For now, she’ll have to rely on her supporters in the blogosphere to get the word out.

I truly believe that this speech will become Sarah Palin’s “A Time For Choosing”.

I’ll have a recap of all the events in Iowa on tomorrow’s The Roderic Deane Show. It will go live on BlogTalkRadio at noon Eastern time.