6.The equity of the corporation tax must be assessed in terms of the impact of its burden among individuals, not firms. Provided that the corporation tax will not be passed on to consumers or wage earners, its burden must be attributed to shareholders or recipients of capital income at large.
7.Since all sources of income should be treated equally, this calls for integration of corporate-source income into the personal income tax.
8.Failure to integrate discriminates against lower-income shareholders. Various techniques of integration were examined, including both full and partial integration.
9.Full integration may be obtained by the partnership or the capital gains method.
10.Implementation of either approach involves administrative difficulties, but these should not prove insoluble.
11.Partial integration may be obtained by excluding dividends from corporation tax or by granting a dividend credit at the shareholder level.
12.Integration was disregarded by the 1986 tax reform.