One of the most stupid things Congress could do (even before raising the cap. gain rate) is to get rid of the s-corp. The owner’s SS benefits are commensurate with his contribution.

So, an s-corporation shareholder and an employee making the same amount are taxed differently. Furthermore, if the s corporation shareholder then received the same amount in social security later, his benefit per contribution put into the system is greater.

Again, this is not as bad as paying nothing, but it is also not paying an equal share into the system (note, I said equal, not fair)

It is down-right funny for Justin to characterize an s-corp election as a “loop-hole.” But whatever perpetuates class warfare…

Changing the tax system is the only way to fix this problem. By just fixing the loopholes, the companies will, in turn, increase prices (pass the cost of taxes down to the consumer). I happen to think that a Fair Tax at a state to state level would do well, but that’s just my opinion.

I’m no expert, not in taxes nor economics nor government regulations. But I’ve been around long enough to be comfortable questioning whether such simple unexamined facts are proof of what one of you has described as “blatant corporatism.” It’s awful easy to assume that corporations eagerly and maliciously and greedily direct the vast majority of wealth to insiders like top management and already wealthy investors, while joyfully and unscrupulously squeezing workers dry and casting them aside.

I used to assume it myself. But now I think there WAY more to it than that.

S Corps pay LOTS AND LOTS of taxes. However they pass the taxes through to their owners which pay them.

Disreguarded LLC’s pay all their income just like a guy got it from selling a car or something.

Its incredibly hard to save much in the way of losses in S corps. So when S-Corps *do* pay taxes, they pay more than a C-corp would after a long period of losses.

This number is ENTIRELY DECEPTIVE. While there are copious tax cheats out there, the real number is MUCH MUCH lower than 67%.

Before more of you idiots want more taxes passed please understand how taxes work before you pass your righteous indignation. Who do you trust more with money – companies and small business owners, or the government? Think hard about this before answering :)

Big companies that aren’t making any money will also not pay taxes because (Tada!) taxes are generally paid on profits, not on gross revenue.

Which is not to say that we shouldn’t increase our corporate taxes. Or, like Washington state, start taxing on gross revenue and not profit. But *this* article doesn’t provide enough details to know if outrage or pity is called for.

I don’t think it’s quite as bad as you say, though. Almost as bad, but not quite. I mean, couldn’t the CEOs all take salary cuts and stop getting their huge bonuses to save the companies buckets of bucks? It may not stop them from failing to compete, but at least they’d have tried. How can they have their amazing homes, cars, and all that money while the companies that gave it to them go up in smoke? Forget corporate responsibility, how about CEO responsibility!

Not that I don’t completely agree with you about closing the loopholes. Such blatant corporatism really needs to stop.

And while I understand the argument that *some* of these companies might be paying taxes as individuals, this government-corporation backscratching has got to stop.