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View Diary: No country for Zuckerbergs (193 comments)

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  •  No Taxes on Corporate Expenses (3+ / 0-)
    Recommended by:
    kovie, happymisanthropy, Egalitare

    The great fallacy in all the taxation of the rich is the difference between their personal income and corporate expenses they consume.

    Corporations are not taxed on income spent, only on profits retained. So when the corporation sends its execs on a trip, all the income that pays for it is an expense deducted from the income, and so not taxed. That first class airplane seat and its unlimited drinks, personal attention by a bevy of fawning flight attendants, and the blanket and socks you can keep are all paid with money not taxed. The limos, the four star hotels, the spa and in-room massage, the banquets with open bars - that's not taxed. Lots of execs, salespeople and other high earners spend much of their year swimming in expensive perks - instead of spending money at home, so it's a double benefit, none of which is taxed.

    The tax economy is completely inverted. Personal consumption still accounts for 2/3 of the private economy; corporate consumption for the other 1/3. We should be taxing only the corporate income, and not the private income. Corporations are entirely creatures of the state, dependent on it, causing state expenses every day all day long. Corporations are the entities that should be paying most, if not all, of the costs of operating the government that creates, protects, sustains and copes with them and their demands on policy.

    "When the going gets weird, the weird turn pro." - HST

    by DocGonzo on Sun Oct 03, 2010 at 08:42:16 AM PDT

    •  Meals & entertainment deductions are limited (0+ / 0-)

      for businesses.  

      the banquets with open bars - that's not taxed

      My Karma just ran over your Dogma

      by FoundingFatherDAR on Sun Oct 03, 2010 at 09:00:20 AM PDT

      [ Parent ]

      •  Limited (0+ / 0-)

        While meals and entertainment deductions are limited to less than 100%, it's not 0%. And those limits apply to meals and entertainment bought for clients and others not the corporation's employee. Employee living expenses, even a "per diem" daily cash handout, are not subject to those limits. Meanwhile the employee isn't eating and being entertained at home, for which they'd pay themselves, out of income from the corporation (and which would be taxed first as income). So those expenses aren't taxed at all, and the employee can demand less direct income from the corporation which would have been taxed.

        "When the going gets weird, the weird turn pro." - HST

        by DocGonzo on Sun Oct 03, 2010 at 09:32:23 AM PDT

        [ Parent ]

    •  Commie! (1+ / 0-)
      Recommended by:
      happymisanthropy

      Or, someone who understands how idiotic and dishonest modern conservatism is.

      "Those who stand for nothing fall for anything...Mankind are forever destined to be the dupes of bold & cunning imposture" --Alexander Hamilton

      by kovie on Sun Oct 03, 2010 at 09:00:32 AM PDT

      [ Parent ]

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