team edward wrote:from24ft wrote:I feel this is worth a watch for those that think the tax system is fair in the US.
Corporations really shouldn't be paying any taxes whatsoever. All of the profits of a corporation are either re-invested in operations or employees or paid out as dividends. The people who receive those dividends are taxed on them. If you tax the company and the shareholder, you are taxing the same income twice, which is "stupid" (to put it succinctly). So if they pay their CEOs gobs of cash as income, who cares because those CEOs are taxed according to the applicable rate.
Now, often CEO compensation is in the form of stock options, which means they probably are taxed on capital gains and not on "income". So they'll pay less tax on those gains. The reasons this is the case are many - starting with the fact that if you have to pay tax when you sell something, you will be less inclined to sell it -- which is bad for the economy. Also the taxpayer pays tax not only on the real gain in the asset but on simple inflation. Why should anyone pay taxes on inflation?
Anyway, long story short, if you are mad because rich people don't pay enough tax, then increase taxes on rich people. If you are mad because "corporations" don't pay enough tax, you are misguided.
First off it would be foolish not to tax corporations based on your logic. Not every corporation employees a huge work force, many are simply set up for tax benefits.
Traditionally and historically corporations have always paid their share of taxes, the reason being is that heavy equipment, trucks tare up those roads more so than civilian traffic. The power demands are also much greater therefore a much pricier power infrastructure must be setup. Corporations also use the court system, diplomatic system and feel that they too have rights to be protected by the military. (little thing like not respecting mining rights, may escalate to tit for tat economic measures, and hence possible military conflict, and an entire nation suffers as a result). All these reasons are why HISTORICALLY corporations have paid taxes everywhere.
...however, lets just say that we disallow taxes on all corporations and businesses, just because as you say it is double taxation. First off, this is math, so we would have to make up for the shortfall, by raising the taxes on earners. We also would have a lot of people hiding their money in their business and having the business buy mansions and rent them out to the VIP's. There are lots and lots of ways to hide money from any taxation based on your logic, so I think its very naive and impractical and hence why its not employed anywhere in the world.
Also its easy to get incorporated, and many people just do business that way, for legal responsibility and tax write off reasons. Under your proposal you can make yourself tax exempt with little effort, just fill out a form. Corporations are allowed to own Art and fancy cars, and all the trappings too.
EDIT:
(Also the reason it may not be double taxation, is that the corporations use services, and our mutual resources, our property/possession rights and court systems. It would be a heavy strain, to make people maintain roads, power, court services, that they never use, for a corp that makes its bundles taking our resources and selling them overseas. When you get home from work, you can pay taxes on those same services for yourself and your family, even if you are an owner of the said corp, which will be based on how much you take home.)
EDIT2:
Moon 2009 -
http://www.imdb.com/title/tt1182345/This is a great movie, the corporation is sub character that only makes itself know to be an actor much later in the movie. One of the better sci-fi's I have seen in a while.
Unles you're a CEO 
but even then you still pay tax twice. 
