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Only net corporate income is taxed, not gross income. Imagine if you only had to pay income tax on the money you had left over after paying all your living exp
by blacksqr 7y ago
Only net corporate income is taxed, not gross income.
Imagine if you only had to pay income tax on the money you had left over after paying all your living expenses. That's the deal corporations get.
- jshaqaw 7y agoI’m not sure how the math on gross income (which I assume you mean to be revenue) would work. Any business without insanely high gross margins would cease to exist. Could you explain?
- blacksqr 7y agoI was not advocating that gross corporate income be taxed. I was pointing out that your statement: "for a C corp each dollar of income is already taxed at the corp level", is flatly untrue. A lot of large corporations get their net income down to zero or next to zero, deliberately pushing their business strategies to bolster their stock price rather than net revenue. In those cases, capital gains tax is the only tax paid on their activities, and the advantage of capital gains tax rates vs ordinary income rates is by no means collapsed.