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Corporate Profits Soar. The Super Wealthy Reinvent American Capitalism | Global Research:
"The pro-billionaire Economist magazine recently discussed the pass through fad:
“A mutation in the way companies are financed and managed will change the distribution of the wealth they create…The corporation is becoming the distorporation…More businesses are now twisting themselves into forms that allow them to qualify as pass throughs.”
So, for example, imagine that nine rich guys get together and call themselves a pass through corporation of some variety. They do this because they want to avoid personal liability in case things go awry. Their partnership only buys and sells stocks and goes on to make billions, while paying zero corporate taxes. When their risky bets go bust and the partnership is sued by hoodwinked investors, the company instantly declares bankruptcy, since all profits were quickly “passed through.” The partners (the nine guys) cheerfully go home to swim through their sea of cash. "
Taxing Income from Wealth Can Always Raise More Money Than a Wealth Tax
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Why a wealth tax is not all it is cracked up to be, but a well-designed
income tax can do a fine job of curtailing wealth disparity.
1 hour ago
