Frantisek Vlcek wrote: > Awful! Look at a better model: in Vietnam, AFAIK, taxes are not > extracted from individuals but from corporations. To NOT tax > corporations is just awful. The simple most externality producing > entity, a big corporation, doesn't pay for the externalities it > produces. That's immoral.
Not necessarily. When corporations are taxed, the same profit get taxed twice; once on the corp profit, and once on the dividend income to the shareholders. Thus, if five people start up a business as a partnership, they will probalbly pay less taxes than if they start the same business as a corporation, although we have subchapter S corps for some, but not all corps, which allows treatment as if they were partners. There is no logical economic reason for double taxation, even with large corporations, as long as it is done fairly. There are, however, special tax laws for certain types of businesses (like oil companies), and certain transactions (like stock options) that can operate unfairly at times. It is the special tax breaks, however, that are the problem. Double taxation of corporate profits in general, IMHO, is still counterproductive and therefore unwise. It forces corporations to avoid paying the dividends they should really pay to their owners, the shareholders, which, for most corporations, are middle-income individuals. Dan -- Daniel J. Matyola mailto:[EMAIL PROTECTED] Stanley, Powers & Matyola mailto:[EMAIL PROTECTED] Suite203, 1170 US Highway 22 East http://danmatyola.com Bridgewater, NJ 08807 (908)725-3322 fax: (908)707-0399 - This message is from the Pentax-Discuss Mail List. To unsubscribe, go to http://www.pdml.net and follow the directions. Don't forget to visit the Pentax Users' Gallery at http://pug.komkon.org .
