Double Taxation

Oh, those pesky taxes. We hate paying them. Yet we still keep electing politicians who like to spend our hard-earned dollars. You'd think that being taxed once was enough. But no, alas, it ain't.

The notion of double taxation here refers to corporations that have made a gadjillion dollars...or, ok, let's say whatever.com had operating income of a billion bucks. They then pay 30% corporate tax. So that billion becomes 700 mil after taxes. The company dividends $300 million a year, and those dividends come after tax. So Joe Shmoe then pays, say, 40% tax, and that includes federal and state tax in both forms of pain. So there's another $120 million paid in taxes.

Whatever.com was taxed once to the tune of 300 large, and then Joe was taxed again for 120 large, boiling that profit of a billion bucks down to $580 million. After all the vampires sucked their blood, they took almost half of whatever.com's profits. Hope they find good ways to spend it.