Ed Kleinbard’s Business Enterprise Income Tax (BEIT) would eliminate many of the current distortions in the US taxation of investment income. This includes choices regarding debt versus equity financing, retained earnings versus dividends/stock buybacks, United States versus overseas investing, and C corporations versus pass-throughs. BEIT fits with Kleinbard’s overall view that average citizens would benefit from a larger government funded by moderately progressive taxes. But, similar with other proposed reforms, BEIT is less effective in taxing economic rents earned by the wealthiest individuals.