Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : A US National Health Care System? -- Ignore unavailable to you. Want to Upgrade?

To: Lane3 who wrote (24743)	10/1/2012 6:08:00 PM
From: i-node	2 Recommendations Respond to of 42652

>> Shareholders receive their money and it's taxed and that's that, no? The double-taxation argument derives from the fact that the corporation is taxed on the earnings, then the dividends are taxed to the shareholders once those earnings are distributed. So, if a corporation earns a million dollars and pays $300,000 in taxes, it leaves $700,000 to distribute to shareholders. The shareholders are then taxed again on that $700,000. This is avoided in small corporations by election under subchapter S to be taxed like a partnership, which causes the earnings to avoid taxation at the corporate level. But only the smallest corporations can qualify for S corporation status.