mck@ratex.UUCP (Daniel Kian Mc Kiernan) (03/25/85)
I would like to point out that, since (with a minor exception)
personal income from dividends is taxed, any tax on corporate income beyond
retained earnings is a form of double taxation. I would also like to point
out that, given the increasing role of pension plans (and the like) in the
stock market, taxation of corporate income is increasingly taxation of the
elderly.
Non-prescriptively,
DKMcKorb@whuxl.UUCP (SEVENER) (03/26/85)
> > I would like to point out that, since (with a minor exception) > personal income from dividends is taxed, any tax on corporate income beyond > retained earnings is a form of double taxation. I would also like to point > out that, given the increasing role of pension plans (and the like) in the > stock market, taxation of corporate income is increasingly taxation of the > elderly. > > Non-prescriptively, > DKMcK This is an argument that is constantly reiterated by conservatives. However there is a very simple point this argument neglects to mention: namely that corporations, under the law, have the legal status of "persons". This gives them legal and other advantages. If corporations are to be considered as "persons" then they should pay the same income tax as ordinary persons do. Of course they do not. While much has been made in the past (before Reagan's tax bonanza giveaway) of the "unfair" burden suffered by corporations under a 50% corporate income tax, actually the income paid by corporations making billions of dollars in income is many times less than that paid by individuals. One should also point out that the 50% tax rate only applies to profits after various and sundry deductions have been deleted, *not* to the total income of the corporation. The argument is that the corporation has fixed costs of plant, personnel, etc. to stay in business. But then why not apply the same argument to taxation of individuals and deduct costs for food, housing, medicine and other such "fixed costs" of staying alive in order to be able to labor for a profit? Of course that is not done when calculating individual's income taxes so to compare the two and then say the corporations are paying the "outrageous" rate of 35% tax is quite invalid. Elderly people's pensions are generally calculated on a fixed rate. While pension funds *are* increasingly important in the economy it remains true that the wealthy control approximately 70% of all stock. If you are worried about the elderly, I suggest aid be funneled directly. A 70 year old Howard Hughes hardly is in need of any tax breaks or arguments that his stockholdings should not be taxed because of his age. tim sevener whuxl!orb
wetcw@pyuxa.UUCP (T C Wheeler) (03/27/85)
Would someone please give Sevener a short lesson in economics? The wealthy own 70% of all stock indeed! If that statement isn't straight out of the socialist list of cliches, I never read it. The wealthy got out of the stock market years ago Sevener. Institutions and us small folk are the only ones left to play the game. Take a look at the trades as they come over the tape some day and you tell me the wealthy are playing in the market. Phooey. T. C. Wheeler