Quote:
Originally Posted by palmetto defender
Remember that dividends which are currently taxed at 15%, have already been taxed at the corporate level at a rate of perhaps 35%. That means a double taxation on the invested capital. Excessive.
|
No, it doesn't.
You are not the Corporation. You are two seperate legal entities.
Their profit is not your profit. Their income is not your income.
Your profit only occurs when they issue you a dividend.
It's not a double tax, it's a tax on the Business, and then a tax on you, two different entities, two different taxes.
And it's exactly the same as payroll, where the business is taxed on its profit, then the employee is taxed when they are paid.