Yeah but say you own a house and write some hit software that brings in $1m a year. At the moment either you or your company pay income tax on the $1m. With zero corp tax you leave all the money in the company, the company buys a corporate yacht and jet, for spending money you pay yourself minimum wage and borrow a bit against the house. Result millionaire lifestyle, zero tax. I see your point in principle but in practice it makes the above kind of avoidance too easy. Unless you are some place that doesn't need to raise income tax because it has another source of money eg, Dubai with oil or Monaco with real estate.