DOUBLE TAX BAD! HURR!
A really great comment from a really odious thread on one of the economics blogs I read, where libertarian ideologues cluster like vultures and peck away at Warren Buffet for daring to have the gall to point out that it might not be such a great idea that our tax system taxes his secretary at a higher RATE than it does him. Double-tax whiners, pay attention.
Ok, so where did Buffett get the money to pay his secretary? Why probably capital gains and dividends from corporate stock he owns! Wasn't that already taxed at 35%?! Since money always is moving around in our economy there's always some way to spin a story that "my dollar was already taxed!"
True corporate income is taxed and owners of corporations have less to pay themselves after their company pays its taxes. But corporations are treated as separate persons under the law so Mr. Buffet doesn't have to worry that he will be sued should one of his companies goes bankrupt. If this benefit of incorporation isn't worth the 'double taxation' then why not simply 'unincorporate' his companies and let them take on the form of partnerships or sole proprietorships whose income would then only be taxed once?
I'm still stuck working in a conference room and very busy, so no non-trivial crackplogging from me for a while longer. Please contain your disappointment. Extra credit for those who identify the other libertarian commenter stereotypes which correspond to Tonto and Tarzan.