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Politics : Moderate Forum -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (14354)	12/3/2004 11:49:57 PM
From: 49thMIMOMander	Respond to of 20773

<self employed business men> well, europeans were cheap until virginia decided that just a drop was enough for all the offspring. Suddenly the market responded with a 10,000% increase of even an old colored couple. The natives got even cheaper, because either they escaped to their cousins or just died, they were not suitable as investments.

To: Sun Tzu who wrote (14354)	12/4/2004 1:24:41 AM
From: cosmicforce	Read Replies (2) \| Respond to of 20773

< I don't believe corporations should be taxed at all.> This is interesting because I started to agree, but only until I thought deeply on the matter. I've always felt luxury consumption should be taxed because it is not regressive and promotes social stability in the society. Those who can pay, should pay. I don't think the poor (the definition of poor TBD!) should be taxed at all. What if you had $1.5 B in equity that came from $1 MM invested? The $1.4B in equity growth are not actually realized until the shareholders convert it to houses, cars, jewelry or shares in other equities. If the company doesn't offer a dividend (personal income equivalent, returned to the owner), then there would be a great motivation for people to simply not cash in their shares, but rather leverage against them as part of a fully collateralized line of credit. You don't pay income tax on debt, even if it is collateralized by stocks that have gone up 1000x. Taxing corporations prevents them and their owners from growing in an unlimited manner like an untrimmed hedge (this actually promotes competition and rewards start-ups which haven't produced income yet). If you didn't tax corporations, you'd end up with 3 or 4 large players owned by a handful of insiders. The insiders could live like kings (by raising untaxable debt against their collateral). This amounts to an unlimited tax deferment which would be regressive.