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View Diary: That Sucking Sound? It's The 73 Billion-Dollar Corporate Robbery of The States (97 comments)

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  •  BTW one of the reasons we tax corporate profits (1+ / 0-)
    Recommended by:
    JayRaye

    is b/c the corporation is suppose to be a legal entity on to its own.  That is why when you sue McDonald's the CEO doesn't pay the tab out of his own pockets.  The corporation also retains profits from year to year to fund growth.  That way you don't have to go to the shareholders for cash each time you want to expand.  It also facilitates stock and company movement.  

    If Corporations don't want to be double taxed there are lot of business forms they could take - LLC, propietorships, etc. that do not come with the double taxation consequence.  But obviously the corporate form is too lucrative a form to choose a more "friendly" tax model.  

    •  burlydee - it's not more lucrative (0+ / 0-)

      but once you reach any real scale it is the only business structure that actually works. You can't have thousands of partners or other pass through owners, plus add to that the nightmare a public company with thousands of shareholders. That's why all the listed stocks are C corporations.

      "let's talk about that"

      by VClib on Thu Mar 20, 2014 at 08:04:31 PM PDT

      [ Parent ]

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