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So when an investor pays 15% "income" tax, it's on money that his company already paid 28% tax on (for a total of 39.8% tax). But as it's capital gains, there's
by mseebach 15y ago
So when an investor pays 15% "income" tax, it's on money that his company already paid 28% tax on (for a total of 39.8% tax). But as it's capital gains, there's a capital investment - money which again had to be earned, taxed and subjected to a risky investment.
It seems to me that if the benchmark tax rate is 40% (AVC says his brothers pay 40-50% on their salaries), and the 15% rate is raised, it would be beneficial for the investors to simply take a salary and bonus instead?
- comicjk 15y agoAt least in the US, the average actual corporate tax rate is much lower than the statutory (by about half). Corporations get deductions far beyond what individuals do.
- mseebach 15y agoPresumably they get deductions for expenses? Money that's spend can't get paid out in dividends.
- gwillen 15y agohttp://www.gocomics.com/tomthedancingbug/2003/03/08/ http://www.gocomics.com/tomthedancingbug/2003/03/08/