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When I hear about “double taxation” in the U.S. I think of the taxation of corporate profits combined with income taxes. For capital invested in stocks, I am ta
by mcculley 6y ago
When I hear about “double taxation” in the U.S. I think of the taxation of corporate profits combined with income taxes. For capital invested in stocks, I am taxed twice on any income derived.
- jjoonathan 6y agoOnce at 0% in Ireland and once at 15% for capital gains. Where can I sign up to have my income double taxed like this?
- mcculley 6y agoMy understanding is that this is only possible for very profitable corporations. Can smaller entities get away with this?
- cestith 6y agoThat's a reasonable first thought. When I hear "double taxation" in the US I usually think first of self-employed people sometimes having to pay both income and payroll tax compared to an otherwise employed person only paying income tax. Then maybe I think about places like Missouri where after you take your post-tax income and buy a car with sales tax on the purchase, you pay yearly for that car as a personal property tax (which does not include your license plate, or inspection, or the city sticker some local places require).
- mamon 6y agoYou are taxed only once: with income tax. Company is also taxed only once: with corporate profit tax. The reason why that makes sense is because corporation is treated a separate legal entity (person), and that's a good thing for you, because you are not responsible for company's mistakes (that's why they are called "limited liability companies". Publicly traded companies also have limited liability). Also, if, as a majority shareholder you appoint yourself as the CEO and pay yourself a salary, it is tax deductible for your company, so money that goes to your salary is taxed only once.