Skull Pilot
Diamond Member
- Nov 17, 2007
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Romney was robbed of 35% of what was coming to him before he ever saw it. Or more like 40%.
Then they taxed the rest 15%....so it got taxed twice.
Throw any personal income tax on there and he is likely paying 50 to 60% overall.
Warren Buffet can suck on that.
it didn't get taxed 2 times.
Example:
He earns 1,000,000. Gets taxed at 35% and is left with 650,000
He then invests the 650,000 and makes 350,000 on it...he only pays taxes, at 15%, on the 350,000.
People have that wrong too...the "double taxed" thing just isn't, just like the "romney pays less than everyone else" just isn't.
No he puts some money into a company. Say he owns 50%. The company makes 2,000,000 pre-tax. So he is going to get 1,000,000. Now the company gets hit with 35% taxes. So he only gets 650,000 which he has to call capital gains. So he pays another 15% of the 650 K. And if he invests the rest in the "stock market", his stock growth will only cost him 15%, but if he is getting dividends on which he will pay 15%, those dividents are 35% less than what they were pre-tax.
That's the tax scenario of a C corp.
Assuming that the company is a C corp you are correct.
For an S corp the business does not pay any tax as all the profit and losses pass through to the individual stock holders.