Corporate Taxes, Why?

#78
#78
ClearwaterVol said:
Then we’d need to switch from the idea of income tax to a consumption tax.
Click to expand...
Possibly. Consumption is better than income.
I am most in favor of a head tax. It is the most equitable and moves away from the concept of "from each according to their ability".

Budget ÷ able bodied adults 18 or older = tax this year.
 
  • Like
Reactions: SpaceCoastVol
#80
#80
Vol8188 said:
And how will I pay that loan?
Click to expand...

You don’t have to if you own the corporation that lends it to you. Your corporation won’t turn the loan over to a collection agency.

Or another way to put cash into an individual’s hands - they borrow against their equity. Margin loan interest in the current tax code is deductible against dividends. So the taxable dividends paid to the owner won’t be taxed as long as there are interest charges to off set the receipts.

The bottom line, if corporations have a zero tax rate and the additional burden is shifted to individuals then people will use their corporations to shield the income generated by the business. Business owners already pull resources out of their businesses in ways other than cash.
 
#81
#81
Thunder Good-Oil said:
You don’t have to if you own the corporation that lends it to you. Your corporation won’t turn the loan over to a collection agency.

Or another way to put cash into an individual’s hands - they borrow against their equity. Margin loan interest in the current tax code is deductible against dividends. So the taxable dividends paid to the owner won’t be taxed as long as there are interest charges to off set the receipts.

The bottom line, if corporations have a zero tax rate and the additional burden is shifted to individuals then people will use their corporations to shield the income generated by the business. Business owners already pull resources out of their businesses in ways other than cash.
Click to expand...
I'm no accountant, but i think if you owe debt to a lender and the lender forgives the debt (my understanding of what you are proposing), they are supposed to report that debt forgiveness to the IRS, which creates income for you.
 
  • Like
Reactions: SpaceCoastVol and TRUEFANVol
#82
#82
clarksvol00 said:
I'm no accountant, but i think if you owe debt to a lender and the lender forgives the debt (my understanding of what you are proposing), they are supposed to report that debt forgiveness to the IRS, which creates income for you.
Click to expand...
My Corp loaned money to us a few years ago. My cpa had me sign a loan agreement with myself and put the payback on autodraft.

The IRS is very wise to the forgivable loan tactic.
 
  • Like
Reactions: Vol8188 and clarksvol00
#83
#83
clarksvol00 said:
I'm no accountant, but i think if you owe debt to a lender and the lender forgives the debt (my understanding of what you are proposing), they are supposed to report that debt forgiveness to the IRS, which creates income for you.
Click to expand...

So the lender just keeps the debt on their books. They don’t need to forgive it.
 
#84
#84
McDad said:
My Corp loaned money to us a few years ago. My cpa had me sign a loan agreement with myself and put the payback on autodraft.

The IRS is very wise to the forgivable loan tactic.
Click to expand...

And there’s the other scenario that I suggested. If you have equity, you can borrow against it. Margin loans with brokers aren’t on a repayment schedule. The interest just gets rolled into the loan (and that interest is deductible against dividend and interest payments to the individual).

Commerce is taxed. That’s how the country works. If a for profit corporate entity’s business income is taxed at zero percent, then people will find ways to exploit it. They already do. It would simply happen on a far larger scale.
 
#85
#85
Thunder Good-Oil said:
And there’s the other scenario that I suggested. If you have equity, you can borrow against it. Margin loans with brokers aren’t on a repayment schedule. The interest just gets rolled into the loan (and that interest is deductible against dividend and interest payments to the individual).

Commerce is taxed. That’s how the country works. If a for profit corporate entity’s business income is taxed at zero percent, then people will find ways to exploit it. They already do. It would simply happen on a far larger scale.
Click to expand...
I disagree in principle that people or corps exploit anything when they keep more (all) of their money away from government.
 
#87
#87
Thunder Good-Oil said:
You don’t have to if you own the corporation that lends it to you. Your corporation won’t turn the loan over to a collection agency.

Or another way to put cash into an individual’s hands - they borrow against their equity. Margin loan interest in the current tax code is deductible against dividends. So the taxable dividends paid to the owner won’t be taxed as long as there are interest charges to off set the receipts.

The bottom line, if corporations have a zero tax rate and the additional burden is shifted to individuals then people will use their corporations to shield the income generated by the business. Business owners already pull resources out of their businesses in ways other than cash.
Click to expand...

Yeah, you can’t do that. You even have to give yourself a salary
 
#88
#88
Vol8188 said:
Yeah, you can’t do that. You even have to give yourself a salary
Click to expand...

Companies aren't necessarily required to give the members/owners that work at the company a salary. Things get slow and the owner may be paying staff and expenses and taking nothing home.
 
#90
#90
McDad said:
I disagree in principle that people or corps exploit anything when they keep more (all) of their money away from government.
Click to expand...

People will exploit every opportunity. Legally or illegally. Ever notice how mom and pop restaurants have calculators next to their registers? It’s not hard to evade sales tax when customers pay cash. It’s not difficult for a business owner to fill up the mini-van with a company credit card.
 
  • Like
Reactions: ClearwaterVol
#92
#92
Thunder Good-Oil said:
Warren. Buffett.
Click to expand...
+ Elon Musk, Bill Gates, Mark Suckerberg, etc etc etc etc


Oh... and Nancy Pelosi, Chuck Shumer, Joe Biden, Mitch McConnel, etc etc etc

The 'rich' are the ones that know how to play three card monty, and they can hide the marble right in front of your eyes. What we really really need is to set up a guillotine on the Capitol steps, and march every last one of them out.
 
New posts
You must log in or register to reply here.

VN Store



Back
Top