Quote:
Originally posted by sgtclub
The question is not whether the government has the power to tax this income, but rather, whether it should. The only way this cannot be viewed as double taxation is if you really view the corporation separate and apart from its owners. The corporation (or other entity) pays a tax on its income. But really, the individual owners of the corporation are each paying a portion of that tax based on their percentage ownership. When the owners also pay a tax on the amounts that are dividended up, it is a second tax on the same income.
Wonk, I know you are in favor of the dividend tax, but are you really taking the position it is not double taxation?
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Thank you for responding; my reply below yours was written without seeing yours.
Will the owners also pay a separate share of that corporation's liabilities, or will they expect them to be limited to the corporation's assets? If we are treating the corporation's taxes as those of the shareholder, why should we not do so across the board?
I know, I can be a bit of a throwback to 19th century ways of thinking, but it strikes me as important here to remember how much the government is giving them, and how artificial these privileges are.
