4 ms·
How would you get double screwed? You would only pay income taxes on the gains.
by NegativeK 9y ago
How would you get double screwed? You would only pay income taxes on the gains.
- vasilipupkin 9y agothe corporation also pays taxes on the income before distributing it to you.
- jgalt212 9y agoNot if you're Apple, et al. https://www.nytimes.com/2016/09/01/business/yesterday-outraged-by-apples-tax-dodge-today-by-its-tax-bill.html?mcubz=3 https://www.nytimes.com/2016/09/01/business/yesterday-outrag...
- fooster 9y agoThats because US corporate tax rates are ridiculous and so big corp plays games. Small corp of course are the real victims because they can't afford the army of lawyers and accountants to manage all the complex tax avoidance schemes so they get stuck with some of the highest corporate tax rates in the world.
- jgalt212 9y agoI agree. That is part of the problem. But, I'd argue that even if US Corp rates were much lower (say 15%), Tim Cook, ever the optimizer, would still pursue the 1% rate they currently achieve. I think rates should be lowered and and tax avoiders/dodgers should not be allowed to bid on govt contracts.
- vasilipupkin 9y agoIf Apple pays a dividend, it has to pay taxes on it first. You are confusing that with their overall tax rate. It's low because they have a pile of cash that they aren't paying out
- jgalt212 9y agoIt's in good part because of that cash pile (now above $250B) that Apple stock price is so high. And this post is about capital gains being taxed lower than income. Time Cook pays himself in options, which influenced by untaxed cash hoard. https://www.cnbc.com/2017/05/02/apples-cash-hoard-swells-to-record-256-8-billion.html https://www.cnbc.com/2017/05/02/apples-cash-hoard-swells-to-...