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You're correct about (corp tax + cap gains or corp tax + dividends). What I'm pointing out is that this theoretical future $100m in value is being taxed once t
by srgseg 16y ago
You're correct about (corp tax + cap gains or corp tax + dividends).
What I'm pointing out is that this theoretical future $100m in value is being taxed once through capital gains tax for the person that created the value, then a second time via corporation tax when that value manifests itself as a profit, then a third time when someone tries to take that profit as a dividend. And possibly fourth when estate tax is paid. That's a lot of tax.
- ewjordan 16y ago...and before the coin drops into the company's coffer, it's already been taxed as income against the person that earned it to spend, and before that as corporate tax against the corporation that employs that person, and as income tax against the people that bought that company's products, and so on. Income tax taxes every transfer of wealth from one entity to another. That's just the way it works, the government takes a cut of the profit that anyone realizes at every hop. I can't fathom any reason that income I obtain by betting on Apple should somehow magically be more exempt from taxation than income I obtain by betting on poker, working a dead end finance job, or selling my old crap on eBay, all the money from any of those sources has already been taxed dozens of times.