Wednesday, August 8, 2012

Letter to ChiTrib: double taxation

Chicago Monday 6 August 2012

The Voice of the People, Chicago Tribune


In his Monday 6 August Chicago Tribune article "Promote corporate tax transparency" John McCarron has the obligatory quotes around "corporations are people" to show where he stands on whether corporations are people or not.  Didn't the founders settle that question in the first amendment where they wrote: "Congress shall make no law ... abridging... the right of the people peaceably to assemble...."  What are corporations other than people peaceably assembling?

The real problem here is the government taxing the same income twice:  They tax corporation income, then after the corporation distributes part of that income to stockholders as dividends. they tax the stockholders too.  If that isn't double taxation, what is?

The people who assemble as corporations should be able to decide whether their corporation will pay taxes, with the stockholders not paying taxes on dividends, or the corporation should pay no income tax, and the assemblers should pay taxes on their dividends.

Arnold H Nelson

No comments: