Zeev's Turnips Patch-No Politics (ZEEV)

[ardent jd]

Z,

It is not so much that dividends are taxed twice, but that corporate income is taxed twice. S-corporations and LLC's are taxed only once - when income flows through to the owners. Why should publicly traded coporations be treated any differently? Yes, raise corporate rates to individual rates (and get rid of the deductions), but then eliminate all taxes on dividends and capital gains. Or raise dividend and capital gains rates to individual rates, but then eliminate all corporate taxes. The double taxation on corporate income is a great impediment to capital formation, and the fact that other countries do the same is no excuse.

On payroll taxes, somebody published a piece here within the past few days that shows that corporations really do not pay these taxes - workers do. Supposedly shifting the burden more toward companies will not accomplish anything.

On returning surpluses to taxpayers, fine. But what makes you optimistic that this will happen? As Milton Friedman said, government will spend as much as we send them in taxes, plus as much more as they can get away with. Surpluses only occur when the money rolls in faster than Congress can figure out how to spend it...and they always manage to solve this "problem" pretty quickly. I fear higher taxes will never eliminate deficits.

BTW, congrats on the amazing turnips' calls.

ardent