One big problem I see with this is that of corporate personhood. If you cut corporate taxes and raise taxes on dividends and capital gains, you are basically promoting investors to not leave their money inside the corporation. Once this happen, you have to ask the question of what corporations are for? If they do not provide benefits for their employees, and not provide dividends for their legitimate owners, and yet not provide tax revenue for the government (and indirectly, to overall society) under which they operate, then exactly why do they do what they do?
(Oddly, though, this means that it's in every government's best interests to encourage globalization, and then get their citizens to consume all their products from foreign companies, while not having to deal with having any local companies consuming local resources. Presumably, local employees would also be employed remotely by foreign companies, or by local foreign-owned corporate subsidiaries.)
That's not necessarily a problem. One could cut the corporate tax rate and fund benefits through income/dividend/capital-gains/sales/VAT taxes.