http://biz.yahoo.com/ap/080227/energy_taxes.html (making some popcorn and sitting back to watch this debate)

If you read more into it you'll see that this is about rolling back tax incentives that exclusively benefit the oil industry. That's quite different from slapping more taxes on an "innocent" industry as the republicans like to portray it. I think it's only fair, not to mention good for our national security and the environment, that the alternative-energy industry enjoys some tax breaks for a change.

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2004 VW Jetta TDI (manual)

Past MB's: '96 E300D, '83 240D, '82 300D, '87 300D, '87 420SEL

Easy:
Get rid of corporate taxes.
Get rid of corporate tax breaks.

That's fine, but it also means downsizing the warfare/welfare state.

__________________
2004 VW Jetta TDI (manual)

Past MB's: '96 E300D, '83 240D, '82 300D, '87 300D, '87 420SEL

Done!

Easier. Raise corporate taxes on income (profits), but allow deductions for putting the money either back into the business or shareholder dividends. There's no real reason that a corporation itself needs profits. The shareholders are another story.

Far easier and cost-effective not to tax business profits at all.

If you tax "profits" you are taxing the business owner -- me in some cases. What will I do if you tax me? Raise prices. Thus, taxing business is a hidden tax on consumers. Why not be honest and just tax the consumer?

Bingo! The taxpayers have bottomless pockets... right?

I don't buy this argument, but perhaps I can be sold.

If you directly own the business, you are a fool. If you own stock in the business, you can pay yourself dividends. The business should not have to pay any taxes on money paid for dividends, as this is not profit for the business. It is profit for the stockholders, and should be taxed there, and once.

Profit for the business is essentially just building a bank account held by a non-human entity. If you have to reorganize your business to pay the profits to the owners, rather than keep it in the company, why would you have to raise prices?

Money paid to stockholders is exactly the money that comes from profits. If taxes are paid from profits than the shareholder, me, takes a hit. As a shareholder I don't like to see my profit (dividend) decreased, I like to see it increased. I am now under pressure to find a company that distributes greater dividends -- more profit. So what the Board do? Keeps dividends high by raising prices or cutting expenses -- like not giving workers a COLA, for example.

B

.........because it's regressive. The people with lower incomes bear a disproportionate share of their income for the tax.

Not necessarily.

It depends on how it is structured. For example, one could make income below a certain level untaxed. But you know that, right?

You asked a simple question.

I gave you a simple answer.

You wish to add layers of additional code to modify a regressive system. Have at it. But, you know that too.........right?

You missed my point. Money paid to stockholders should be considered an expense against profit, and the company should pay no taxes on it.

Oh.........but then the government doesn't get to tax the same money twice........what a shame that would be.