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Avoiding double taxation? Evil! How about removing the corporate income tax? https://www.nytimes.com/2014/01/06/opinion/abolish-the-corporate-income-tax.html h

Avoiding double taxation? Evil! How about removing the corporate income tax? https://www.nytimes.com/2014/01/06/opinion/abolish-the-corporate-income-tax.html https://www.nytimes.com/2014/01/06/opinion/abolish-the-corpo...

ryandrake 9y ago
I've never understood the whole "double taxation" complaint. Money is taxed whenever it changes hands. Why is it that only the taxing of dividends is considered "double taxation" [1]? 1: http://www.thepatriotaxe.com/blog/wp-content/uploads/dividends.gif http://www.thepatriotaxe.com/blog/wp-content/uploads/dividen...
- aracarie 9y ago
  Because companies can't deduct the dividend payment on their taxes. If $100 is paid in dividends then both the individual and the company pay income taxes on that same $100.
  - BearGoesChirp 9y ago
    If I use $100 to pay for groceries, I had to pay income tax, sales tax, then the company has to pay any profits on it, and then when the employee gets paid they have to pay income tax on their part. Perhaps the issue is we tax money way too much as it flows through our economy.
- conanbatt 9y ago
  Its definitely about how the compounding of two taxes is a lot. If you live in a country that doesnt have a tax treaty with the us for example, for every 100 dollars, you could potentially have to pay 35 in the US, and then of the 65 left, 22.75 more to the home country, for a whooping total of 57.75% tax rate.
- notahacker 9y ago
  There's even more [and more unjustifiable] whinging about "double taxation" over inheritance tax, despite inheritances comprising assets that bought with income that in many jurisdictions hasn't been taxed for decades, often with enormous untaxed asset price appreciation in the mean time. Many of the people making arguments against "double taxes" also favour balancing the books with higher sales taxes - sales taxes not deductible from our income taxes - presumably in the expectation that the incidence of that "double tax" will fall more upon other (usually poorer) people...

ryandrake 9y ago

I've never understood the whole "double taxation" complaint. Money is taxed whenever it changes hands. Why is it that only the taxing of dividends is considered "double taxation" [1]? 1: http://www.thepatriotaxe.com/blog/wp-content/uploads/dividends.gif http://www.thepatriotaxe.com/blog/wp-content/uploads/dividen...

aracarie 9y ago
Because companies can't deduct the dividend payment on their taxes. If $100 is paid in dividends then both the individual and the company pay income taxes on that same $100.
- BearGoesChirp 9y ago
  If I use $100 to pay for groceries, I had to pay income tax, sales tax, then the company has to pay any profits on it, and then when the employee gets paid they have to pay income tax on their part. Perhaps the issue is we tax money way too much as it flows through our economy.
conanbatt 9y ago
Its definitely about how the compounding of two taxes is a lot. If you live in a country that doesnt have a tax treaty with the us for example, for every 100 dollars, you could potentially have to pay 35 in the US, and then of the 65 left, 22.75 more to the home country, for a whooping total of 57.75% tax rate.
notahacker 9y ago
There's even more [and more unjustifiable] whinging about "double taxation" over inheritance tax, despite inheritances comprising assets that bought with income that in many jurisdictions hasn't been taxed for decades, often with enormous untaxed asset price appreciation in the mean time. Many of the people making arguments against "double taxes" also favour balancing the books with higher sales taxes - sales taxes not deductible from our income taxes - presumably in the expectation that the incidence of that "double tax" will fall more upon other (usually poorer) people...