Should GOP Congress tackle tax reform?
Jonathan Horn, U-T SAN DIEGO
Friday, November 14, 2014
Kelly Cunningham, National University System
America's system of double taxation taxes income on the corporate level and again on the personal level. Essentially the government gets about 65 percent of non-retained earnings while shareholders, who put up the money and take all the risk, get 35 percent. This puts American corporations at a vast disadvantage competing against companies in other countries. Even corporate shareholders within communist China are taxed at 25 percent and dividends at 10 percent, resulting in payout ratio for the Chinese government at 51 percent from distributed corporate profits and shareholders getting 49 percent. This begs the question, which nation is more communist and which is more capitalistic?