Comments on: Doing business the American way http://statelineobserver.com/econo/doing-business-the-american-way/?utm_source=rss&utm_medium=rss&utm_campaign=doing-business-the-american-way   Morenci, Mich. & Fayette, Ohio Sun, 05 May 2013 04:45:45 +0000 hourly 1 http://wordpress.org/?v=3.5.1 By: contrarian http://statelineobserver.com/econo/doing-business-the-american-way/#comment-863 contrarian Wed, 13 Jul 2011 14:47:02 +0000 http://statelineobserver.com/?p=4889#comment-863 You can see my thoughts on tax loopholes/deductions in previous posts. I don’t like News Corp paying less than other Corp’s if that is the case.

There are smarter folks than I that read this blog so I’m asking for some help. Why do corporations pay any tax? The way I understand it and I may be dead wrong, corporations are to pay taxes on their net profit. Then when the owners of the corporation, (the share holders) receive dividends (their share of company profits) they pay tax on it again.

Suppose you had a sole proprietorship, say Green Enterprises for instance. Green Enterprises makes a little money, takes advantage of tax depreciation on equipment, writes off his property taxes and interest costs and then Green Enterprises is taxed as personal income once. No double-tax on the same income. Is that correct or fair?

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