Jumping in the middle here. At 04:05 PM 9/24/2007 -0500, Leland F. Jackson, CPA wrote: >For income tax purposes a corporation is consider a person, much like >you and I. Some corporations can elect to be tax under the IRS rules
No, you have it backwards. Actually, what the Gov has done is attempt to treat individuals like corporations. In other words, the actual tax law is supposed to only be taxing "corporate" profit. Look in the archives for a link Derek provided. It talks about research into where the personal income tax came from. Basically, personal income tax is most likely illegal. I've heard about, and done some research on this, before. Why do I still pay taxes? Fear. >after all expenses have already been deduced. Whatever net income is >generated is then taxed at a progressive rate, so the more net income a >corporation has, the more revenue the Federal Government receives The >income tax is not something a Corporation could view, at least in >theory, as an expense to be passed on to the consumer, because its just >a percentage of net income. You're looking at too small a part of the picture. Look at the bigger picture in the real world and you'll understand what happens. If corporate tax is raised, corporations will raise the price of their products. The concept is it increase the percentage of their profit to offset the additional percentage lost to higher taxes. >This makes the government more like a partner of the corporation. The >government wants the business to success and generate good income, >because the government participates in the earnings. And I think here you've painted too broad a stroke instead of looking at specifics. Government "as a partner" of corporations is not a constant thing, and not equal to all corporations. E.g. the break-up of monopolies. Also, the political "winds" will continually change Gov from partner to adversary based on the ideology currently in power. So I'm not sure where you were going with the concept, but realize the generalization of Gov as a partner is incorrect or at least inconsistent. -Charlie _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[EMAIL PROTECTED] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
