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Respond to the following:
Dr. Bill Berry
Double Taxation is Misleading
Hi All,
I want to talk about the lie that is “corporations are taxed twice”. That makes it seem like the pay twice the taxes, but nothing is farther from the case. If corporate taxes (yes, they are different than your personal taxes) are 25% on net income above 50,000 and 15% on dividends, the combined total of 40% is a little more than the max individual rate of 37%. Yes, it is higher but it is not double. It may seem like an altruistic move, but a CEO that has no salary, usually has stock bonuses. While these are taxable, the market growth on them may be long-term gains and taxed at a lower rate.
Why would it be common to hear that corporations are taxed twice?
Dr. Bill
“Competitive” distractions: Cutting corporate tax rates will not create jobs or boost incomes for the vast majority of American families. (2017). Economic Policy Institute. https://www.epi.org/publication/competitive-distractions-cutting-corporate-tax-rates-will-not-create-jobs-or-boost-incomes-for-the-vast-majority-of-american-families/
8/23/2022 5:23 PM
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