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Response to onecaliberal (Reply #2)

Tue Sep 2, 2014, 12:37 PM

3. They sorta do though

Since corporate profits are technically stock owner profits (profits investors and those saving for retirement earn in the form of increased stock price, stock dividends, and bond payments), those stock owners pay taxes on their investment gains. At 10% it's not as much as payroll tax, but is close, since taxes on someone earning about $50k end up being close to 15% to 20% after deductions. So actually forcing corporate taxes means that the money earned will be taxed once on the corporation itself, and then again on the people who own stock in that corporation. That's the double-taxation thing. And although a lot of people are pushing for closing loopholes to force corporations to pay taxes, I don't think a lot of people in Washington, or the economists that advise them, would approve of that, since much of that profit actually ends up in people's pensions and 401k's. You don't want to "tax grandma," do you?

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