Okay, my .02

There is a need for a corporate tax, but not for the reason you are thinking. It has nothing to do with the governments ability to raise revenue, but a whole lot to do with the governments ability to direct the economy. We do not have a central based political economic system in this country. In short, if the government sees a need for increased economic growth in a particular sector for any reason it is impossible to force the private sector to get involved. However, using the Internal Revenue Code, does have that effect by granting tax breaks for companies and individuals that support econonmic policies. My problem with George Bush's incentive programs, the 300.00 early refund, and last years $400 early child care credit, is  that they are a waste of time and government resources to build up the economy. As an analogy it is like throwing a million gallons of water at an incoming tidal wave. A good effort and a lot of work, but in the ebd it is utterly pointless. The major factor in out economy is transportation, whether of goods or people. When the costs of transport increase the economy suffers. Prices go up, companies and people start buying less, people begin getting laid off. Well we all know the drill. Unfortunately OPEC holds the keys to a this very vital part of economy. And they can raise oil prices for strictly political reasons. If you don't think OPEC is going to raise oil prices because Bush has scared the crap out of them. I think you are wrong. They will raise the prices, which will cause our economy to slow, Bush will be blamed for it, and most likely lose the election. Historically we wil not re=elect a president who has had the economy drop year after year. It is a show of no faith, so to speak. We need jobs. We need to cut dependence on foriegn oil. How does the government do that? Without bankrupting the government in the process.

Here is an idea. Hydro-Electric Cars. The government offers a 100% tax credit to all auto manufacturers for R&D on hydro-electric cars. They offer a 100% tax credit to all gasoline suppliers, and manufacturers to begin R&D and purchasing of new equipment to prepare for the switch over. Since Hydrogen is produced cheaply by the electrolisis of water and is the most clean burning of fuels (it gives of water vapor) the enviromentalists will back it. Because of the tax credit, so will the auto manufacturers and the american oil companies. Now to add frosting to the cake, you allow the average american to deduct, in full from his taxes, spread out over 5 years the cost of a new hydo-electric car including interest. Oh my God, this will bankrupt the nation, or will it? I f you figure this at a cost of roughly $6000.00 per year for each person that buys a new car of this type, you are looking at a cost in revenue of $1200 on average. Now how many people would buy a car under those conditions. How many manufacturing jobs would this create, not to mention all the ancilliary businesses that would need people in the service industry. What effect would this have on the political power of the oil producing nations? The tax credits to the manufactures would simply mean a net 0 change to their profit line, and with the politacal implications for them it would be priceless. Green peace, the UAW, Standard Oils and the big three with all their lobbiests all on the same side? Is it possible?