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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: Don Lloyd who wrote (3138)	10/17/2001 3:19:58 PM
From: Mark Adams	Read Replies (2) \| Respond to of 24758

You're ignoring the lower wages and higher final product prices that are a part of the result of corporate taxes, not to mention the public shareholders, including retirement and pension plans. If the bulk of privately held corporations are structured in a fashion that reduces total tax liability, then doesn't some of this reduced tax cost actually decrease total cost to the consumer/society? I suppose I should propose that by treating all corporate income in a pass through fashion, we would reduce substantial friction in the form of attorney & accounting fees to setup and maintain multiple corporate shells in an effort to minimize total tax liability. Since keeping 3 sets of books for one logical entity doesn't actually increase production of final goods, there is a hidden cost to this activity. Reducing corporate tax rates to zero while retaining the ability for corporations to retain income tax deferred would only serve to increase the amount of frictions.