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Cuz I'm the tax man

By Owen Paine on Friday April 15, 2011 11:04 PM

Should limited liability corporations -- those ghostly contrivances of our Victorian legal system -- pay taxes on their "income"?

Of course they "should", but as suggested here, in many cases this question is moot. They don't pay any stinking taxes; in fact they often get unearned credits -- subsidies for what? Hell, I don't know. Prolly for just being so damn big and nasty.

But be that as it may -- if they are in fact non-persons why should they pay taxes? Many better ways to do this, of course -- that is, if you want Uncle to more effectively soak the rich and famous.

I wonder at the radicals that work themselves up into a deep-fryer state over the tax system's infernal class tilt. (I hear Oxy or Flug sayin' "what else had they expected?")

The record is clear: if you want to tax the elite -- really tax 'em -- you know, get money of theirs out of 'em, you gotta surprise 'em. Attack on an open flank. The only decent tax attack has to be predicated on one principle: it takes time for their spear bearers and retainers to come up with the right new spears. In the interval you can milk 'em... some.

But I say leave this to the pwog wonks and extortion shysters that love this war by green eyeshade. For us warm-blooded red-hots, I say forget about it. Don't be like this class-piety equity geek writing in Dissent:

I Just Paid More Taxes Than Most of Corporate America

If recent trends in business taxation hold, when I finally get around to writing the check and putting my tax return in the mail, I’ll be contributing more in federal income taxes than the bulk of all U.S. corporations.

Of course, that’s not saying much. It’s not hard to chip in more than zero dollars..."General Electric, the nation’s largest corporation, had a very good year in 2010.

"The company reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States.

"Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion.

Wrangles over raising Richie Rich's taxes are a dead end. If you wanna. do some spreadsheet martial arts, then just work up some numbers on cutting job-class taxes and the job-class nut of living costs -- like say the junk of mortages on house lots and the employee hunk of heath premiums and and ...

Hey, let me be perfctly clear on this: I love playing taxman class avenger maybe even more then most leftoids. After all, I'm a poli-econ-con who in my earlier tossed salad days studied -- in as much as I did study -- under the great and glorious wizard Wild Bill Vickrey.

Yes, indeed. In fact my very first blog entry, by time of actual composition, was on a wealth stealth tax. But please. It's sticky-fingered pipe dreaming and as we all know well, most job folks don't give a damn. They aren't that envious, not like us failed meriters are, anyway. Job class helots just want their own taxes reduced, and it oughta be only in that context that we talk about raising taxes on Nathan Arizona Detroit -- only as part of a massive shift of class burden worth trillions up and down.

Comments (8)


Holy crap, op. My first "legit" job was covering the 1986 tax code amendments. I did Primary Sources work for BNA on that crap too.

Title 26 can kiss my osterreich ass! And the idea of restoring parity by amending Title 26, well that can kiss my hiney 25 times running.

Don't worry the baron's wealth or the how baron finagles to keep and get more of it, peasants. Pay no mind to the baron. Agitate for a smaller kick in at the annual dues and duties party.

Yep. That'll get people roused up.


"They aren't that envious, not like us failed meriters are, anyway"

yes crow that was aimed at you

"baron "??

is this some tortured rework
of the new feudalism line

or was that some other
know nothing round here's

crow you are a charm
as predictable as a fart
in boys' chapel

a chesire cat that doesn't disappear
just gets mange


I believe that in a limited liability company, the income and expenses flow down to the owners every year, and the taxes are paid by them.

A subchapter C corporation like GE retain income and expenses at the corporate level. That's why these corporations are supposed to pay taxes themselves, and then the owners pay taxes only on dividends received and, if they sell the stock, on gains in the stock price.

Carolyn Kay



a sub s corporation does indeed pass thru earnings to the stock holders
paying no taxes itself

sub s corporations
have restrictions
including on the number of stockholders and clases of stock

c corporation are standard form
all publically traded corporations are type c

It's hard for me to get worked up right now about this topic, op-san, since the duopoly is in the process of bolting a nice fat round into the chamber aimed at its own foot. An interesting test of how far the Dims can go and still count on collecting the votes of the NPR sheeple.




karl: "Holy crap, op. My first "legit" job was covering the 1986 tax code amendments."

did you have a look into 'The Dole Amendment' and Gallo?


liked this one -

'...the duopoly is in the process of bolting a nice fat round into the chamber'

[been a multi-decade process]

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