Comment Re:Corporations should not pay taxes on profits (Score 3, Interesting) 592
"Making corporations paying taxes on profits is double taxation and should not be done. Rather the profits should pass through to the owners (investors) and then the investors should pay taxes as if that was their earned income."
As I have no mod points I will simply bump this post with a response. This is an interesting assertion that I have not heard before. Anyone have any solid counter-arguments? I'm not sure I buy the whole "double-taxation" aspect - where is it doubled? If you are referring to the revenue coming into the company being taxed and then paying out to employees who are also taxed on income, then that situation is false. The cost of wages is a tax deduction for the company and they would not be taxed on those dollars that are paid out as an operating expense.
Regardless, I think the premise falls in line with the argument that "corporations are not people", and therefore should not be able to own property, have rights, or, in this case, be taxable. It's the owners of the company who bear those resources/responsibilities.Personally, it seems to me that eliminating corporate tax on profits would substantially benefit the growth of a company and could consequently lead to a number of beneficial side effects including higher employment rates, higher wages, and overall national economic growth. It would most certainly help small businesses which struggle the most and which are among the top sources of employment in the U.S. Since the biggest players are already skirting around this responsibility anyway, why not formalize the model for the betterment of all?
As I have no mod points I will simply bump this post with a response. This is an interesting assertion that I have not heard before. Anyone have any solid counter-arguments? I'm not sure I buy the whole "double-taxation" aspect - where is it doubled? If you are referring to the revenue coming into the company being taxed and then paying out to employees who are also taxed on income, then that situation is false. The cost of wages is a tax deduction for the company and they would not be taxed on those dollars that are paid out as an operating expense.
Regardless, I think the premise falls in line with the argument that "corporations are not people", and therefore should not be able to own property, have rights, or, in this case, be taxable. It's the owners of the company who bear those resources/responsibilities.Personally, it seems to me that eliminating corporate tax on profits would substantially benefit the growth of a company and could consequently lead to a number of beneficial side effects including higher employment rates, higher wages, and overall national economic growth. It would most certainly help small businesses which struggle the most and which are among the top sources of employment in the U.S. Since the biggest players are already skirting around this responsibility anyway, why not formalize the model for the betterment of all?