I also would pay tax on whatever income I derive from the company.
That is why it is double taxation and that it why s corporations were
created.
On the other hand I think some of the really large corporations cry
crocodile tears over this. By large I mean Sun, Intel, Microsoft, etc.
Companies with billions. If you want a corporate veil then you should
pay accordingly is my opinion.
Dana
On Tue, 12 Oct 2004 15:56:03 -0400, Won Lee <[EMAIL PROTECTED]> wrote:
> At 15:42 10/12/2004 -0400, you wrote:
> >But this makes sense to me. A publically traded company is a corporation.
> >A corporation is a legal fiction giving a company an existinance, separate
> >from any of the owners or workers of the company.
> >
> >Giving it a life and identity of its own in essence.
> >
> >This "person" has to pay taxes on its income. That "person" then gives
> >money to those people it owes money to, and they in turn pay taxes on
> >their income.
> >
> >How is that double taxation?
> >
> >Jerry Johnson
>
> It's double tax because the same income is taxed 2 times on one
> transaction. The distribution of a dividend payment is payment from the
> company to it's shareholders who are eligible. In this single transaction,
> the company generates a tax liability and the shareholder generates a tax
> liability. There is a chance that my prof was incorrect or maybe she was
> sharing just an opinion but I haven't read anything that is really
> convincing yet.
>
> Not my prof but he is considered to be a pretty smart guy.
>
> http://www.jeremysiegel.com/view_article.asp?p=240&h=1________________________________
>
>
>
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