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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If they don't want the double taxation, why don't the owners just set it up as a partnership? Pass-through taxation -- no dividends issue, I think (wanker could speak to this better).
Oh, because they want to be shielded from liability. Right. So they actually do really want the corporation to be viewed as separate and apart from them.
Cake, eating, having, like el capitan said.
