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Are gains on investments and shares of profit not income???
Are there any arguments for it?
My argument against this is that wages, the income for the majority of Americans, are taxed at a higher rate than investments, which are the income of a minority of Americans - the already wealthy ones.
Dividends and cap gains are already taxed in some form at the corporate level, so investors realize them "after-tax." It follows that a second tax should be lower. By contrast, wages are tax-deductible to corporations, so that money is only taxed once at the personal level.
Even though investors don't personally pay the corporate tax, as shareholders they own the corporation so in effect, they actually do. The taxes paid come directly out of shareholder's equity so in the end, the gap is less than it appears.
Can't wait for the conspiracy theories on this one.
Phil,
Most corporations don't pay Corporate taxes to the USA anyway.
They move their Corporate headquarters overseas and then they don't have to
pay it.
Only 9% of the total tax money that the USA collects every year is Corporate
tax.
Corporations write the tax laws. In their own favor.
Our politicians are owned by these powerful corporations.
That is why they don't pay very much in Corporate taxes.
Do you know who pays the bulk of all of the taxes in this country?
Small businesses.
Not the Corporations.
And then after the politicians do the corporations bidding, they become
lobbiests and they are "formally" put on their payroll.
Personally, I truly feel there should be no income tax on the federal level
for personal capital gains and dividend income anyway.
I do believe the Corporations should pay income tax that they should pay,
but that would require getting money out of campaigns, which is not going
to happen.
By eliminating the non wage income I think it would encourage more investment
by everyone, at all ages, (not just retirement accounts), and it would help the
economy in a very positive way.
Phil,
Most corporations don't pay Corporate taxes to the USA anyway.
They move their Corporate headquarters overseas and then they don't have to
pay it.
Only 9% of the total tax money that the USA collects every year is Corporate
tax.
Corporations write the tax laws. In their own favor.
Our politicians are owned by these powerful corporations.
That is why they don't pay very much in Corporate taxes.
Do you know who pays the bulk of all of the taxes in this country?
Small businesses.
Not the Corporations.
And then after the politicians do the corporations bidding, they become
lobbiests and they are "formally" put on their payroll.
Personally, I truly feel there should be no income tax on the federal level
for personal capital gains and dividend income anyway.
I do believe the Corporations should pay income tax that they should pay,
but that would require getting money out of campaigns, which is not going
to happen.
By eliminating the non wage income I think it would encourage more investment
by everyone, at all ages, (not just retirement accounts), and it would help the
economy in a very positive way.
Interesting point. So, for some companies, like Apple, the investors really don't pay the corporate tax. I guess if they had no corporate tax though, there would be no loopholes for the bigger companies that ship their manufacturing overseas, while the smaller companies are stuck here.
Are gains on investments and shares of profit not income???
Are there any arguments for it?
My argument against this is that wages, the income for the majority of Americans, are taxed at a higher rate than investments, which are the income of a minority of Americans - the already wealthy ones.
Actually, that isn't true. The majority (by a narrow margin) of American households pay at an actual rate of 0% federal income tax.
that statement about corporations dodging taxes is just nonsense.
the s&p 500 averaged over 29.5 % the last 6 years in corporate taxes paid.
sure there are some that are able to do it but not many. isome like soft drink companies do 80% of their sales outside this country so they should not be paying much in taxes here.
Everything comes out of shareholders equity. Equity = Assets - Liabilities. Taxes are simply one of many corporate liabilities. They are not special and are not different from the others in any meaningful way. Claiming that a corporation has already paid taxes on its own activity and therefore you should pay no or lower taxes on your income from partial ownership of that corporation is simply nonsense. These are separate events in separate regimes. Each triggers a tax liability. Some just don't want to pay and will make up stuff in attempts to avoid it.
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