Your Taxes could be reduced by 44% if corpo loopholes closed....

[mcwoodduck]

Not sure what school you went to but the math I learned as a kid was 1+1=2  One federal tax on the raw profit and one tax on the personal income of that taxed profit equals two, that same Dollar is taxed twice.     

Please don't take this as a slight , but I really think your in over your head. Get a good tax consultant. There is nothing wrong with my math. even show him my post. he will agree I am correct. You are not taxed twice. If you own the business as sole you are not taxed on "Raw" anything. You are taxed once on "net".

As far as your follow-up regarding dividends earned , I;m a bit tired and your example is a bit hard hard to follow. I will re-read and take a swag at it tomorrow.

Right Gross Profit is taxed at the corporate level.  Correct?
Then NET profit is taxed as you recieve it. 
I think you are the one that is in over your head if you can not understand simple math.
And the country is doomed if enough people are fooled like you are about investments, savings, and the use of banks to create money.
Do you understand how banks create money by using your savings and lending it out? 

[scootrd]

Right Gross Profit is taxed at the corporate level.  Correct?
Then NET profit is taxed as you recieve it. 
I think you are the one that is in over your head if you can not understand simple math.
And the country is doomed if enough people are fooled like you are about investments, savings, and the use of banks to create money.
Do you understand how banks create money by using your savings and lending it out? 

Wrong Gross Profits are not taxed  -
A corporations gross  Profit is reduced by it's deductions to find NET. It is NET (if you are a company) or adjusted Gross income (if you are an individual ) that is taxed not Gross.

AND BELIEVE IT OR NOT, Higher corporate taxes force corporations  not to sit on high Gross profits in lieu of RE-investing those profits back into growing the corporation through expansion, new equipment, additional wages, additional advertising, etc. etc.. thus reducing overall Gross through business deductions to lower NET profits on which are subject to tax.

The only people being fooled are the ones who believe 'horse-and-sparrow' economics work (you know if the horse is given plenty of oats to eat it will leave some additional droppings for the sparrows) .









 

[mcwoodduck]

MCWD...Nope.......please see post #66 , slow down and digest. Pay attention> that if corps and owners were not in their own tax system...then their incomes would be taxed at the rate and system of the peasants!_ _got that? That won't be allowed.
.
..TM7

You are missing the point. 
Corporate profits are double taxed and the total tax rate is higher than the what you call the pesant rate.  Got that! 
In the case of a mutual fund the profits can be tripple taxed.  Corporate, MUtual fund, and then the share holder.  Got that!
Do you expect a return on your saving account? 
Do you expect a pension plan to grow?
How do you think a life insurance policy works?  Your 100,000 policy is not funded 100% by you, it is invested and and grows. the higher the tax rate the more you have to fund it. 
The higher the tax rates the more you are going to make Grandmom have to choose between medicine and food. 
The higher the tax rates the less investment you are going to have and hte fewer the jobs. 
Just out of curriosity when did you get a degree in economics?   
 

[mcwoodduck]

Right Gross Profit is taxed at the corporate level.  Correct?
Then NET profit is taxed as you recieve it. 
I think you are the one that is in over your head if you can not understand simple math.
And the country is doomed if enough people are fooled like you are about investments, savings, and the use of banks to create money.
Do you understand how banks create money by using your savings and lending it out? 

Wrong Gross Profits are not taxed  -
A corporations gross  Profit is reduced by it's deductions to find NET. It is NET (if you are a company) or adjusted Gross income (if you are an individual ) that is taxed not Gross.
GROSS PROFIT IS THE TOTAL PROFIT.  NET PROFIT IS WHAT IS LEFT AFTER YOU PAY EXPENSES, RENT, LABOR, AND TAXES.  A PORTION OF THAT NET PROFIT IS THEN HANDED OUT TO SHARE HOLDERS.  SO IT HAS BEEN TAXED.  THEN THE SHARE HOLDER GET A TAXED DOLLAR AND HAS TO PAY TAXES ON IT AGAIN! 
 

AND BELIEVE IT OR NOT, Higher corporate taxes force corporations  not to sit on high Gross profits in lieu of RE-investing those profits back into growing the corporation through expansion, new equipment, additional wages, additional advertising, etc. etc.. thus reducing overall Gross through business deductions to lower NET profits on which are subject to tax.

The only people being fooled are the ones who believe 'horse-and-sparrow' economics work (you know if the horse is given plenty of oats to eat it will leave some additional droppings for the sparrows) .

[gypsyman]

No matter how much we give them, they'll always out spend us. What the hell, let the boat go down. Hope some here have a life raft. gypsyman

[scootrd]

Were getting side tracked as to original OP , but what the heck , I have a few minutes ,
Lets just take one of your examples abouve regarding Double or triple taxation claim. 

Paying multiple taxes on mutual funds is an owners error.

MWD  invests $10,000 into a mutual fund that pays a 100 dollar annual dividend. MWD automatically reinvests the dividend and the fund gives him more shares. At tax time each year, MWD must pay taxes on the $100 he earned that year. If MWD did this for 10 years, total earned in dividends is $ 1k.  At the end of the 10 years, his fund would be worth $11k. (his $10K initial investment , plus 1k dividend reinvestment. If MWD cashed out, he would get a check for 11k and owe nothing in taxes because he had already paid them.
 
 But MWD has forgot he already paid taxes each year on the dividends and when he sells his fund and get their check for $11k  he also receives a 1099 stating that amount (it’s called gross proceeds). If MWD's CPA asks How much did you invest ? and MWD says 10K and therefore 1k gets recorded as profit on Schedule D (he just screwed himself ) and end up paying taxes on that 1k profit all over again!

What MWD did wrong . He believes amount invested is the amount initially sent to the fund. But the IRS says all reinvested dividend and capital gain distributions count as “investments,” so MWD should told CPA 11k and the proceeds would not have been double taxed.

Don't believe ? ask your tax adviser.