The only problem that I have with raising taxes on corporations is that they are so good at evading taxes, so that I don't think you could necessarily collect much. Of course, simply cutting subsidies to corporations, including all those cost-plus defense contracts, would accomplish much.

Similarly, the IRS could be better funded and staffed such that it could collect all of the taxes it is owed under current laws.

Yes, but do you really think Kerry will have any success in "closing corporate loopholes?"

This is indeed clever politics. The big drawback from a public policy position, as I see it, is that it abandons the collective power of the public purse -- for instance, giving unemployed workers a tax credit for them to buy health insurance as individuals is much less efficient than the government buying insurance for the entire group all at once (and, of course, it's even less efficient than the government insuring everyone through Medicare, but Larry King thinks that's socialist so we can't do it).

Nick-- If you look at Kerry's health plan, everyone will be encouraged to join the government health plan for government employees-- still a menu of mostly private plans, but with lots of collective buying power. And it's still a step towards universal coverage.

I'm curious about how these credits affect people who make too little to pay income taxes. Are they still eligible?

Peter- That's what the key phrase "refundable tax credit" means-- everyone can use it even if they don't pay income taxes.

The main problem I see with this idea is that tax credits seem to me to have a history of being proposed as refundables, and then being negotiated down to non-refundables (which are just as good in a sound bite, still give money to the upper-middle, and cost much, much less). So what starts out as an egalitarian method of equal benefits for all ends up leaving out the part of the population that most needs government aid.