Monday, November 06, 2006

Double taxation is a rip-off

I have a fundamental problem with the way taxes are collected here in the US. Now, I have lived here all of my life; thus, I have nothing with which to compare. So, take this with a grain of salt.

First, why are coporations taxed, and then when it disburses dividends, those dividends are taxed at the individual level, AGAIN? These corporate income has already been taxed.

So, why is there a tax on dividends at all?

The Bush administration actually did a good thing recently, when it rolled back the tax on dividends from "ordinary income" to a flat 20%. This is good, but it's not ideal.

I would rather that either corporations are not taxed at all and any income that they pass onto shareholders is taxed at personal income tax rates.

OR, corporations are taxed and any income they pass along is not taxed at all when it gets into shareholders' hands.

One or the other.

What do you think? More on income taxes later.