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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (705220)	10/3/2005 12:03:05 AM
From: Peter Dierks	Read Replies (1) \| Respond to of 769670

Thanks for not disappointing Buddy. I did not expect a sincere answer and you again rather than addressing the issue accused me of lying. Is this too complex for you? Buddy, you keep making things up. You have stated that you support triple taxation by stating that taxing a single income event three times is your preference. Let me make this simple for you. Ten people for a corporation, they each put up $1000 for 1000 shares of stock. The company is in the distribution business. Company frequently buys and resells components. At the end of the year Company reports $10,000 in income and pays half of it in the form of a dividend. The second year Company reports $25,000 in income and pays $10,000 in dividends. At the end of year two investor 10 sells half of her stock for $15,000. The shock of her good fortune kills her and her estate distributes the remaining stock to her heirs. She has sufficient assets to ensure that the stock transfer is taxed. You have previously indicated that you believe that tax is due when the income is first earned by Company. You have previously indicated that you believe that tax is due when the dividend is paid by Company. You have previously indicated that you believe that tax is due when the stock sale for a capital gain is executed. You have previously indicated that you believe that tax is due when the estate is settled. This is a very plausible if simplified example. After you are done reacting to this example, check the math to see that your preference is for triple taxation of the same income event. 1. Full tax is paid by company on the income. 2. A partial exclusion is allowed from the dividend upon which full tax has already been paid. A partial exclusion is allowed on the "capital gain" which is merely a reflection of the retained earnings held by the company. 3. The estate is taxed on the income, dividends, and then the distribution of assets which were bought with after tax income. Triple taxation. Please explain that you do not support this. A true flat tax would exclude any income that has previously been taxed. If you support single taxation, then I agree with you. Same example as above with single taxation: a) Tax paid by Company on income. Dividends, Capital Gains, and Estate tax free. b) No tax paid my Company. Dividends and Capital Gains taxed. Estate tax free. c) No tax paid my Company. No taxes paid on Dividends or Capital Gains. Estate fully taxed. Choose your preference from these three options and I will support you. Don't worry about being cornered Buddy. I do not expect a sincere answer from you.