There's no such thing as an "undistorted economy," there is only different configurations which are more or less efficient in different areas. Taxation isn't "damage," it is the fee you pay for the stability of the system you are operating in and the services that system provides.

> Taxing only dividends, buybacks, and salaries will bias the taxation to mature companies that aren’t growing so fast anymore, minimizing the damage.

This is a reactionary policy to the existing system, not a sustainable new one. At the minimum, it incentivizes:

1. Hoarding cash

2. The acquisition of assets unrelated to the core business (real estate for example)

3. Increased corporate debt (no tax on interest payments)

4. Shifts from salary to stock options

5. Acquisitions over investments in new product lines or R&D

Functionally, you and I probably disagree on some things though - I would want to encourage companies to spend their money on salaries, pushing the money towards the broad consumer base.