November 7, 2006
For immediate release
Media contact: Brian Phillips (202) 464-5102
Washington D.C. -- The financial accounting system we have now was designed on a "bricks and mortar economy," said Douglas Shackelford, the Meade H. Willis Distinguished Professor of Taxation and Director of the University of North Carolina Tax Center.
Shackelford said a real problem is the way we define income for tax purposes.
"The reason is that the key factors for production today are not bricks and mortar. They are extremely mobile. They are principally things such as brains or intangibles or information or technology," he said.
Professor Shackelford discussed financial accounting and the booming stock market in the Tax Foundation's most recent Tax Policy Podcast.
He also made the case for cutting the corporate income tax, calling it a form of double taxation.
"The purpose here is to say, "We're going to tax income either at the corporate level or at the individual level," he said.
"I would like to see something along the lines of eliminating double taxation, and I think there's a lot of options out there, but we've got to start with the understanding that public and privately traded firms should not be taxed differently."
The interview is Number 14 in the Tax Foundation’s podcast series. It’s available online here.
The Foundation publishes a podcast each Tuesday, featuring an interview that sheds light on the nation’s tax system. Best known for its annual calculation of Tax Freedom Day®, the Tax Foundation is a nonpartisan, nonprofit organization that has monitored fiscal policy at the federal, state and local levels since 1937.
For media inquires please email Brian Phillips or call 202.464.5102.