Quote:
Originally posted by sgtclub
I'm not sure why you see a connection between liabilities and taxes.
And it's not as though a corporation is all take and no give. Quite the contrary. Corporations and the private sector in general provide a whole hosts of benefits of the world. Who do you work for?
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I work for my clients, of course, who include corporations, partnerships, charities, and probably every other form of business conceivable. The form of organization I do this in is a limited liability partnership, a wonderful form of organization that does indeed let me have my cake and eat it, too.
The answer as to what the connection is is quite simple: we rely for limited liability on an entity theory of corporations (or partnerships, or limited liability companies). Yet, to reduce the tax bill of those who participate in these entities, we throw out the entity theory and rely instead on an aggregate theory. I believe our theories should be consistent.
This does not mean I think artificial persons should be taxed to the same extent or in the same manner as natural persons simply because they are each "persons", and I'll leave to economists (who shall never agree) the task of figuring out the relative pros and cons of higher or less high tax rates and differences in individual and corporate rates. I also see plenty of positives to corporations, and hope you didn't read my post as suggesting there were not. All my point means is that I don't believe the argument of "double taxation" has merit as a matter of principal, unless we wish to consistent treat these entities under an aggregate theory.
