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Old February 2nd, 2016, 04:38 AM   #41
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Originally Posted by BubbaJones View Post
And tell us TN how exactly did Obama give GE a tax break ???

The truth is, for all the blah blah blah about the max corporate tax rate, the average ACTUAL tax paid by corporations is just 12%.

The corporate tax code is so filled with loops holes and tax incentives that 100 of the Fortune 500 have had at least one year where they paid ZERO taxes. about 30 of them have had multiple years where they paid little or no tax.

Money paid to owners (shareholders) as dividends are taxed as capital gains. 0% to 20% depending on your current income tax bracket.

The exception being the S corp which pay NO taxes. The profit passes straight through to the owner who pays at their personal tax rate.
That would be a huge improvement, making every corporation an "S" corp.
They would simply send a form to the holders of record on 12/31 of each year stating the profit per share times the number of shares the person owned, and that person would pay the taxes at their personal rate.
This would be a big boost to the economy.
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Old February 2nd, 2016, 04:50 AM   #42
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That would be a huge improvement, making every corporation an "S" corp.
They would simply send a form to the holders of record on 12/31 of each year stating the profit per share times the number of shares the person owned, and that person would pay the taxes at their personal rate.
This would be a big boost to the economy.
My company was an S corp and CPA told me to change it to C corp that was done post haste.
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Old February 2nd, 2016, 05:58 AM   #43
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That would be a huge improvement, making every corporation an "S" corp.
They would simply send a form to the holders of record on 12/31 of each year stating the profit per share times the number of shares the person owned, and that person would pay the taxes at their personal rate.
This would be a big boost to the economy.
That cannot legally be done.
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Old February 2nd, 2016, 06:06 AM   #44
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That would be a huge improvement, making every corporation an "S" corp.
They would simply send a form to the holders of record on 12/31 of each year stating the profit per share times the number of shares the person owned, and that person would pay the taxes at their personal rate.
This would be a big boost to the economy.
The effect wouldn't be as great until loopholes, tax incentives and special deals and capital gains effects are altered.
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Old February 2nd, 2016, 06:37 AM   #45
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The effect wouldn't be as great until loopholes, tax incentives and special deals and capital gains effects are altered.
Those are all irrelevant. A sub chapter c or an LLC function just like a mom and pop proprietorship but with a corporate veil. Everything passed through. Depreciation of capital equipment, profits and losses, etc. To keep larger companies from taking advantage of this, and s corp is limited to 100 shareholders.
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Old February 2nd, 2016, 06:41 AM   #46
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Those are all irrelevant. A sub chapter c or an LLC function just like a mom and pop proprietorship but with a corporate veil. Everything passed through. Depreciation of capital equipment, profits and losses, etc. To keep larger companies from taking advantage of this, and s corp is limited to 100 shareholders.
So are you saying a mom & pop can't deduct the wages of an employee? Can they amortize their equipment? What about entertainment expenses? And of course attending that conference in Hawaii was a necessary business activity, wasn't it.
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Old February 2nd, 2016, 06:44 AM   #47
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So are you saying a mom & pop can't deduct the wages of an employee? Can they amortize their equipment? What about entertainment expenses? And of course attending that conference in Hawaii was a necessary business activity, wasn't it.
They can deduct every legitimate business expense. Equipment is amortized and depreciated just as if they were a corporation.
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Old February 2nd, 2016, 07:08 AM   #48
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The effect wouldn't be as great until loopholes, tax incentives and special deals and capital gains effects are altered.
If the company were paying no taxes then there wouldn't be any incentives or special deals, other than direct government grants.

The profit that gets passed through would need to be taxed as income and not cap gains. Cap gains would only apply when the stock was sold. Even then I'd say the owner would need to hold it a couple of years to qualify as cap gains. Selling in less than that time would be income.

However I still think the company would need to pay something. After all they don't pass ALL the profit to the stock holders.

Plus lets face it. Even with taxes and regulations this is a pretty good place to do business. Stable government. Decent (but needing repair) infrastructure. Great resources. Decently educated population. These companies reap the benefits so they need to help pay for them.
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Old February 2nd, 2016, 09:42 AM   #49
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They can deduct every legitimate business expense. Equipment is amortized and depreciated just as if they were a corporation.
Including the essential Hawaii convention and the company Ferraris?
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Old February 2nd, 2016, 09:44 AM   #50
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If the company were paying no taxes then there wouldn't be any incentives or special deals, other than direct government grants.

The profit that gets passed through would need to be taxed as income and not cap gains. Cap gains would only apply when the stock was sold. Even then I'd say the owner would need to hold it a couple of years to qualify as cap gains. Selling in less than that time would be income.

However I still think the company would need to pay something. After all they don't pass ALL the profit to the stock holders.

Plus lets face it. Even with taxes and regulations this is a pretty good place to do business. Stable government. Decent (but needing repair) infrastructure. Great resources. Decently educated population. These companies reap the benefits so they need to help pay for them.
I would agree in principle. But that was my point. Those things need fixing or adjusting.
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