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Politics : PRESIDENT GEORGE W. BUSH

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To: aknahow who wrote (205076)11/27/2001 9:49:45 PM
From: rich4eagle  Read Replies (1) of 769670
 
This is your statement below and it does not logically flow.

<<<<<<<<No, I am not saying the dividends are taxed twice. The earnings of the corporation were subject to tax and these earnings when paid to the owners are subject to another tax. (The only earnings paid to the owners of a C Corp are dividends, and I believe these dividends are not part of net earnings. This is important, C Corps don't distribute earnings except via dividends)
<<<<<<<It is the earnings of corporations that are taxed twice. Of course if you save enough of your dividends or invest them and make more money and build up an estate and then die with out figuring out how to use one of Buffets insurance policies then your dividends may well be taxed again.>>>>>>>>

So the fact is that the earnings of a C Corp are not distributed to the owners and taxes are paid on these earnings and just once by the corp. The dividends are distributed to the owners (shareholders) and they pay tax on the dividends (taxed once). In all other forms of companies and businesses the earnings flow to the individual owners and all taxes are paid by the individual owners and the S corp, partnership, proprietorship, etc pays no taxes on earnings. So your post has conflicting sentences and does not correctly flow and I also believe it is inaccurate.
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