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| Re: Portal … take two w/link (1470234) | |||
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Re: Portal … take two w/link |
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Posted by Steamdriven on Wed Mar 21 20:36:44 2018, in response to Re: Portal … take two w/link, posted by italianstallion on Wed Mar 21 16:19:41 2018. "Yes, the concept of double-taxation of dividends is a scam."I fail to see any aspect of scam about it. Point of disagreement, but no one's hiding anything. Let's take the simplest case I can think of, a company you and x others own entirely. Case 1: Not incorporated. All profits are considered as income to you and your partners, so as a group you're taxed on the net profit of the operation. Case 2: You incorporate and issue shares (m'kay, may simple example may not meet the actual requirements of a stock-owned company in the USA, but you get the idea). The same group now owns all of the shares, and declares an annual dividend. Now the corporation, which didn't exist before, pays tax on any profits. But each member of the group also pays tax on the same profits, now called dividends, when the corp hands them to the owners. Same company, same products/services, same real transactions, but now there is more tax and more time and effort wasted in tax planning rather than building the business. "New transaction!" Yes, finding new ways to collect tax means you can potentially collect more tax. It does not mean it's the best way to insure the greatest output of goods and services. You could, for example, place a sales tax on every transfer of goods before retail sale. Want a beer? Tax the sale from brewer to wholesaler, then wholesaler to retailer, then retail to customer. They're all new transactions, so why not tax 'em? So maybe beer is now $10 each, who needs more than 1 beer per week, anyway, eh? You Instead, the State recognizes that there's really one end-user in this chain, the person who drinks the beer. The tax is applied once, at the point when you're about to consume the thing being taxed. The alternative is to look for the maximum number of ways to tax those wicked beer drinkers and find "perfectly reasonable" points to do so. We don't do that ... yet. Now, one might note that people who own lots of stock have most of the wealth, while the rest of us have more-or-less none. That's an old and probably intractable problem. Bleeding the machines that make stuff to give it to a bigger machine that takes stuff (government) may feel good, but it won't fix the disparity nor make the non-owning people better off. |
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