Yeah, I wasn't disputing that this is how the US does it. I was disputing that absent this, things would be skewed. The issue is not taxing personal income, th

Yeah, I wasn't disputing that this is how the US does it. I was disputing that absent this, things would be skewed. The issue is not taxing personal income, the issue is taxing corporations. A nearly ideal situation would be to eliminate all corporate taxes and tax individuals at a fixed rate when corporate wealth is transferred to shareholders. The only better situation would be eliminating all income taxes and replacing them with consumption taxes. Unfortunately, this is a political non-starter - it would eliminate the ability of politicians to pretend they aren't indirectly taxing people when corporate taxes are raised.