"If you abolish corporate income taxes, then I could have my company loan you the $1000 and receive the interest; it would then compound at 5% per year, and I w

"If you abolish corporate income taxes, then I could have my company loan you the $1000 and receive the interest; it would then compound at 5% per year, and I would only pay income tax when the money is paid out to me as a dividend. In effect, you would be turning corporations into tax shelters." Can you explain what the problem is? I mean you use the term "tax-shelter" and we associate that with something bad. But what's wrong with only taxing when you actually get access to the money you made? You can't even sell the company without having to pay taxes. The money seems 100% unusable till you pay taxes on it. I guess you can reinvest it into something else without cashing out, but that hardly seems like a bad thing