To: Mark Adams who wrote (3374 ) 11/1/2001 10:38:34 PM From: ahhaha Respond to As much as possible, I try to avoid value judgements. Reminds me of the story of the chinese magistrate, who was gifted a horse, which threw his son, breaking his son's leg, which prevented the son from participating in battle, and so on... Is that a good thing or bad thing? can be asked at each stage of the story. Are you implying that closely held corporations should be taxed differently than public ones because the ownership is to a small group of people rather than the large numbers of fractional ownership that exists in a public company? No. If you are, why? If I start a corporation with money from an inheritance or one from the capital markets are these two enterprises necessarily different? If I sell one corp and start another with that money is that worse than putting that money into publicly traded stock? If I start a corporation to manage my vast wealth is that different than starting a corporation to manage others wealth? If you were to start a corp to manage your wealth, you would need to be careful of the Personal Holding Corp status, which would result in all corporate income (investment gains) being taxed at the highest marginal income tax rate.
