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Companies are owned by people. The idea is companies push all profits to shareholders and employees. It’s fucked that people don’t understand this and think tha
by prepend 6y ago
Companies are owned by people. The idea is companies push all profits to shareholders and employees. It’s fucked that people don’t understand this and think that taxing companies is somehow different than taxing people.
As long as taxes are paid the calculus should be in what’s most efficient. I don’t care if the company pays it directly or indirectly through people.
What’s actually stupid is that dividends are taxable. Since they are after tax the company pays taxes, sends the remaining money to shareholders as dividends. Then then the dividends are taxed at the individual level.
What’s even stupider is that is a company is a shareholder. It pays taxes on that dividend income, then distributes to shareholders.
It’s not the system that’s fucked, it’s your understanding of the principles of the system. I suggest a microeconomics 101 MOOC.