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It may not be that simple, and there are definitely exemptions to what the OP posted. But the principle of it is what most of corporate taxation is built upon,
by zo1 2y ago
It may not be that simple, and there are definitely exemptions to what the OP posted. But the principle of it is what most of corporate taxation is built upon, and it's fundamentally different to how taxation works for individuals. Is it logically consistent and/or fair? Doubtful, but it is the way it is, and until we get a law change to happen (in any country - doubtful the world over), it'll stay that way.
- JumpCrisscross 2y ago> the principle of it is what most of corporate taxation is built upon, and it's fundamentally different to how taxation works for individuals They're built on a similar principle: you tax earnings. That's why we have a standard deduction. The point was to cover living expenses. It's clearly not doing that, but the logic is similar. (I'd raise it to $50k+. Cover the cost, about $500 to 600bn, with new tax brackets at $10mm, $100mm and $1bn; a modest increase in the capital-gains rate; and by closing the carried-interest loophole.)