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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (41170)	9/8/2005 11:19:51 PM
From: Oblomov	Respond to of 110194

Here is one problem with making historical comparisons: Sometime in the 1950s, the IRS created the subchapter S corporation. In the 1990s, state governments starting with Delaware and Nevada created the LLC, mainly to remain competitive with other countries where the LLC form is common (e.g. AG in Germany). These corporate forms are very common now. There are even a few publicly traded LLCs, such as Copano, Kaneb, etc. What is distinct about these types of corporations is that they are "pass through entities", that is, they pass all tax liability(as well as the deductions for tax losses) directly to the shareholders. This is very popular since it avoids the double taxation that is incurred by a C corporation. The taxes are paid as income taxes rather than as corporate income taxes. Given the popularity of S-corps and LLCs, could this skew the corporate income tax rate downward, and the personal income tax rate upward?