Why are Dividends taxed twice?

**Snake Bitten** · April 24th, 2003, 09:27 AM

Can someone explain this to me?

1. A corporation turns a profit, and is taxed on that profit.

2. The beforementioned corporation distributes a portion of the profit to its shareholders in the form of a dividend, and the shareholder is taxed.

Wassup?

GTS Dean · April 24th, 2003, 09:30 AM

Because they can and nobody has put up enough of an effort to get it stopped.

**Toby** · April 24th, 2003, 09:39 AM

Because the dividend changed hands. Is this a trick question? :doh:

Supraquik · April 24th, 2003, 09:58 AM

The best way to look at it: It is the "fee" for having a corporate sheild- i.e. no personal liability.

**Hog Whisperer** · April 24th, 2003, 11:24 AM

The dividend is CLEARLY double taxation. This has been a bone of contention with corporations and investors for many years. My CPA tells me that a change in this tax law is being discussed even as we speak.

Definitely a rip-off.

par · April 24th, 2003, 11:27 AM

Can someone explain the rationale for real estate tax? How can you be taxed on something that doesn't generate any revenue or earnings???

**packetjunkie** · April 24th, 2003, 11:29 AM

Did you ever hear how every dollar on income is taxed something like 5x from the time your company earns the money, pays you, you spend it?

As money follows a path it gets taxed at every exchange - thats how our fucked up tax system works.

Of course, no Republican or Democrat seems interested in taking the tax issue on.

par · April 24th, 2003, 11:33 AM

Simplified taxation? What a concept....

Since the government knows absolutely everything about what you own and earns why don't they send out the 1040 pre-filled out and make me just correct any mistakes? That probably wipe out the multi billion dollar taxation business (HR block, Intuit etc.) but it would be a real tax savings in my pocket

**Chuck 98 RT10** · April 24th, 2003, 12:05 PM

How about the way the government comes along whenever they want a new football/baseball/hockey stadium and reappraises the value of your home?

Oh, but they always appraise it for less than you can sell it so they're really doing you a big favor. Yeah right.

**packetjunkie** · April 24th, 2003, 12:55 PM

Real Estate taxes are a crock of shit around here. Here they raise the values of the houses by 20% and then make a big deal about a 3 cent TAX CUT - only your taxes just went up 13% because of the new "assessments".

Lotteries are a big fucking joke. "The money goes towards education" - right. Thats because they take state money out of education so that the school are no better off than when the state funded it.