But you don't increase profits, what you do is spend that money recklessly on R&D that has a lower ROI than if that money was spent outside the company. However, once taxes are factored in the ROI is better than paying taxes due to an increase in the share price.

So what you incentivize is the misallocation of funds from their most beneficial use outside the organization to something in the organization.

My point is that it's a bad tax because it can be controlled and at the same time corporate tax controls the business decisions. This should not be the case in my opinion. Think about it. I think it would be better to focus on sales tax. Also, it would make tax rules much easier to understand.