Quote:
Originally Posted by sbl
Your second point shows how Harvey was trying to mislead us--he is not getting double taxation--if his corp. paid him a salary equal to what his farm earned--he would pay the same tax rate as us working people--the company would decuct the cost of salaries--not pay taxes on that as profit. The real benefit for incorporation is in the tax deductions for investments and depreciation--I am not against that.
Risking your money does not deserve any special benefit over working for it. I still do not think it is fair that the rich pay taxes at half the rate that I do.
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You're the one doing the milseading. People do not incorporate to save on taxes as corporations don't receive special tax breaks such as you claim. There you go beating up on the 10th beer drinker again. Take a look at
Small Business Taxes & Management for a comparison of tax rates and get that nonsense out of your head. Corporations have some shareholders that are working day to day for the corporation and receiving salaries but most large corporations obviously have inactive shareholders. If I have a sole proprietorship I can chose to work day-to-day in the business or hire someone to manage it for me. I'll make more money if I run it myself (unless hired management is more capable) since I'll save on salaries. Either way, I only pay taxes on earnings once. The earnings for a corporation I'm a owner of have already been taxed and the only reason to tax dividends is for socialistic wealth distribution. The primary reasons businesses incorporate is to make it easier to acquire additional capital for expansion (via selling shares) and to limit personal legal liability (especially doctors, etc.).