Yes, but it requires that companies fill out accurate tax returns. Ha! Either that or we have to build the government infrastructure to audit higher numbers of corporate tax returns -- which I don't think anyone wants. Everytime we increase the size the IRS, they just audit more middle to lower income returns.

Even so, there's always the cost benefit analysis. You have to audit a LOT of returns before it makes financial sense for a company to fairly report their taxes because it's cheaper than paying the occasional penalties -- which is pretty much the status quo now. An individual doesn't risk the penalties most of the time, because there'snothing he can cheat on that makes the penalty seem to be the cheaper method. Not true for big business, unfortunately.

Recent years have shown us what most of us have known in our gut all along -- we cannot count on big businesses fairly reporting their financial status, either to stockholders or the IRS. At some point paying taxes has to be on the honor system -- but creating incentives for people to cheat (like offering tax credits that they solely determine they qualify for) seems poorly planned.

Maybe a tax/financial whiz could come up with a solution that covers all the bases. I guess I'm at the point where I dont' think we can count on our legislature to pass it without reams of pork and exceptions that weaken it to the point of uselessness.

I'm having a cynical week :)