The Motley Fool Discussion Boards
Retirement Discussions / Retired Fools
|Subject: Re: Is your 401(k) Inadequate For Retirement||Date: 8/3/2008 1:08 PM|
|Author: cliff666||Number: 13782 of 20085|
CycleGirl: I realize that there is a double-taxation problem on dividends, but that should be fixed in the corporate tax code. For an individual, the income looks the same.
The way I see it, everything is multiple taxed. Take this scenario:
1. A guy mines some ore for the company. He gets paid. His pay gets taxed.
2. The company sells the ore to another company. The profit gets taxed. The second company smelts the ore and pays the smelters. Pay gets taxed.
3. The second company sells the steel to someone else. The profit gets taxed. Company 3 makes it tnto a tractor. They pay the workers, and they get taxed.
3. Company 4 sells the tractor to an agribusiness. The profit gets taxed. The agribusiness uses the tractor to grow wheat. The tractor driver gets paid. His pay gets taxed.
4. Company 4 sells the wheat to General Mills, and makes a profit, which gets taxed. General Mills uses the flour to make Wheaties. The workers get paid. Their pay gets taxed.
5. General Mills sells the Wheaties to a grocery chain. A profit is made, which is taxed.
6. The grocery chain sells the Wheaties to the original miner. A profit is made, and the profit is taxed. The miner eats the Wheaties and goes back to work.
How many times have things been taxed? Now, if each of these companies pays a portion of their profit to their owners, is this not income to the owners? Why should it be taxed any differently from the miner, the smelter, the farmer, the baker, and the workers in the retail grocery?
The only difference is the one group earned money from their effort. The owners made money because they had surplus money to invest. Why should they be singled out for favorable tax treatment? They already have more than the workers.
The whole "double taxation" is a charade, a farce perpetrated by the haves aganst the have-nots.
|Copyright 1996-2016 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|