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The underlying theory is that the corporation generating those gains or dividends was already taxed on that income before distribution. Most economists love th
by dahdum 8y ago
The underlying theory is that the corporation generating those gains or dividends was already taxed on that income before distribution.
Most economists love the idea of a 0% corporate income tax, which would likely be paired with LTCG going to the earned income rate. Unfortunately it sounds too much like a "handout" to be politically viable.
- conanbatt 8y agoDing ding. Corporate taxes as a policy is one of the incredibles where economics and politics clash complete.y
- ThomPete 8y agoThe point is that the really rich get little income (ex. Bezos paying himself around 80K a year) and instead use ex. capital gains to only pay 20%. I don't mind this system it benefits me greatly too. But it's absurd that I pay close to 50% in tax (I live in New York) from the income I make from the actual work I do and much less when I invest. That model seems backward as my income is actually the best indicator of how much value I provide. Where as the potential upside from an investment or buying a house is so big it dwarf any income most people can make.
- rifung 8y ago> Most economists love the idea of a 0% corporate income tax, which would likely be paired with LTCG going to the earned income rate. Unfortunately it sounds too much like a "handout" to be politically viable. Source? I thought the issue with no corporate income tax was that people could just set up shell corporations and indefinitely delay their income taxes.
- drilldrive 8y ago>Most economists love the idea of a 0% corporate income tax, which would likely be paired with LTCG going to the earned income rate. Could you expand what you mean with this statement, and do you have any data on consensus of economists regarding corporate tax rate? Sorry, I am not familiar with economics jargon.