Taxation With Representation?

It has often been pointed out that corporate profits are double taxed when a corporation pays income tax on its profit and then shareholders pay income tax on that same profit when it is distributed as dividends.

Depending on your tax bracket, you will generally pay tax on the dividends of either 15 or 20 percent—just like the tax on other long-term capital gains. There is also an additional 3.8 percent surtax on net investment income for taxpayers that have net investment income above applicable threshold amounts.

There is another example of double taxation that is currently in the limelight.

After the Trump administration recently proposed eliminating the tax deduction for state and local taxes paid, seven major organizations that represent state and local governments at the federal level sent a letter to all members of Congress urging them to preserve the state and local tax deduction along with the tax exemption for municipal bond interest. I wrote about that here.

Time to buy old US gold coins

What I found interesting is this statement in the letter about double taxation:

Gun Control and the Se…
Laurence M. Vance
Buy New $5.44

We are extremely concerned that President Trump’s proposal includes eliminating the deductibility of state and local taxes. Eliminating or capping federal deductibility for state and local property, sales and income taxes would represent double taxation, as these taxes are mandatory payments for all taxpayers. We fundamentally believe that Americans’ income, property and purchases should not be taxed twice.

Double taxation?

If only Americans were double taxed! The truth is, Americans are quadruple taxed.

First there is the federal income tax. The tax rates and income thresholds of each bracket for tax year 2016 are as…

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