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0 pointsgnaritas10y ago0 comments

> money from corporations are doubly taxed as well

No they are not. Money is always taxed when it changes ownership, as corporations are legal persons, it pays taxes on its profit. When shareholders are given some of that profit via dividends, that money is again changing ownership so it taxed as income to those shareholders. Saying something is double taxed is to misunderstand "when" tax applies. If you don't want company earnings taxed that way, don't be a C corp, but it isn't double taxing.

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chillacy10y ago· 2 in thread

Double taxation isn't just some vague term I made up: http://www.investopedia.com/terms/d/double_taxation.asp

What you described is commonly referred to as double taxation. I merely pointed out that this is more evidence that businesses are legal entities defined by the government. If businesses weren't legal entities, this wouldn't be an issue.

However you could have noted that most corporate money is dished out as salaries and bonuses, which isn't taxed twice because the company can deduct it as a business expense.

gnaritasOP10y ago

> What you described is commonly referred to as double taxation

Yes, just as liberals are referred to as leftists by conservatives, it's an inaccurate and derogatory means of referring to a perfectly normal tax practice whose sole purpose is intended to make the listener think it's unfair by glossing over the fact that money is taxed when it changes hands, not when it's earned. Anyone who calls it double taxation is participating in partisan propaganda and intentionally spreading ignorance.

chillacy10y ago

Hmm, wasn't aware of that. I learned it in my econ textbook in high school, so I assumed it was standard terminology. My intention wasn't to offend, and I personally have no issue with the practice.

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