4 ms·

The answer is simple. Eliminate the corporate income tax, and increase personal dividend tax rates to ordinary income rates. Get out of here with your genius i

The answer is simple. Eliminate the corporate income tax, and increase personal dividend tax rates to ordinary income rates. Get out of here with your genius ideas. The problem is due to our 2 party divide and conquer system, sane policy like this will probably never happen as it is one for each side, the warring teams of the political sports leagues, red v blue. If we actually had a system that was based on compromise not dividing, bribery and wealth then this would probably be a good deal.

rsync 10y ago
"If we actually had a system that was based on compromise not dividing, bribery and wealth then this would probably be a good deal." Please see your sibling comment, authored by me - this already exists and is in wide usage ... almost every (small) business you have ever dealt with works just like that.
- drawkbox 10y ago
  >> this already exists and is in wide usage ... almost every (small) business you have ever dealt with works just like that. The first part "Eliminate the corporate income tax" is lessened by pass-through. Pass-through taxation exists in LLC/S-Corp/sole-proprietorship which does remove corporate tax and increases the personal income tax level. This is definitely in effect but there are still 9% of tax revenues from corporate C-Corp taxes which some small/medium businesses may be but mostly large corps. So truly corporate income tax still exists and tax games will be played. The second part "increase personal dividend tax rates to ordinary income rates" is definitely not in effect. Dividend tax rates are 10-15% depending on income and hold time short vs long. The idea is that if companies aren't paying taxes and give that in dividends, revenue is collected more at the non-value creation end just investment end. Which is good and bad but great for cashflow of US companies to not have to pay taxes, lots of that could later be re-couped at dividend payouts.

rsync 10y ago

"If we actually had a system that was based on compromise not dividing, bribery and wealth then this would probably be a good deal." Please see your sibling comment, authored by me - this already exists and is in wide usage ... almost every (small) business you have ever dealt with works just like that.

drawkbox 10y ago
>> this already exists and is in wide usage ... almost every (small) business you have ever dealt with works just like that. The first part "Eliminate the corporate income tax" is lessened by pass-through. Pass-through taxation exists in LLC/S-Corp/sole-proprietorship which does remove corporate tax and increases the personal income tax level. This is definitely in effect but there are still 9% of tax revenues from corporate C-Corp taxes which some small/medium businesses may be but mostly large corps. So truly corporate income tax still exists and tax games will be played. The second part "increase personal dividend tax rates to ordinary income rates" is definitely not in effect. Dividend tax rates are 10-15% depending on income and hold time short vs long. The idea is that if companies aren't paying taxes and give that in dividends, revenue is collected more at the non-value creation end just investment end. Which is good and bad but great for cashflow of US companies to not have to pay taxes, lots of that could later be re-couped at dividend payouts.