Replies to post #79242 on Zeev's Turnips Patch-No Politics (ZEEV)

[ardent jd]

Joe Stocks

The point you make about all corporate profits being double taxed is valid, and is ignored in most serious debate about about the issue.

But you can't simply eliminate corporate taxes, as this would create a huge loophole whereby individuals could incorporate and use pre-tax dollars to offset personal expenses,

Nor can you give coporations a tax credit for dividends paid (as some here have suggested), as many of these dividends go to tax exempt entities, and this would allow some profits to escape taxation altogether. Also, it ignores the issue of double taxation of profits that are not paid out in dividends.

The solution is to raise coporate taxes to the personal level, and use corporate taxes paid to create a proportional tax credit for all shareholders that could then be used to offset dividends, capital gains, and even ordinary income. I'd also be in favor of raising taxes on dividends and capital gains to ordinary income rates, within the context of a flatter tax structure.

[Bullwinkle]

Joe,

I want to thank those who responded to my query, namely Zeev, Capt Jack, yourself and Ardent... I have been grappling with the idea that there must be a better way to put $$$$ back into the pockets of average people, help corporate america and in turn move the economy. Obviously there are no quick fixes and a lot more needs to be done than what has been proposed or done to date.

Happy Trading,
Bullwinkle

[Newly2b]

Our system of redistribution of wealth (through the federal tax system, welfare, etc.) takes potential investment capital from the creators of wealth and redistributes it to the consumers of wealth.

Instead of motivating more people to create more wealth, our system of taxes and handouts encourages people NOT to create anything (other than perhaps another illegitimate child so they can get more "free" money)! JMO.

Newly