Reply to What Happened To Our Country?

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[quote=jsteele][quote=Anonymous]Romney has stock.  stockholders own the company.  the company makes profit.  the profit belongs to the stockholders.  THE FEDERAL GOVERMENT TAKES 30% of the profit (stockholders income) before any of it is given to the stockholders.  THEN THEY TAX IT AGAIN at 15%.  an effective 40% tax rate.  [b]people are so stupid[/b].[/quote]

As you amply demonstrate. In the US, there is a nominal corporate tax rate topping out at 35%. However, corporations are provided a slew of tax deductions which result in that rate almost never being paid. See this article:

http://www.nytimes.com/2011/05/03/business/economy/03rates.html

"A Government Accountability Office study released in 2008 found that 55 percent of United States companies paid no federal income taxes during at least one year in a seven-year period it studied."

So, the "double taxation" you describe mostly exists only in theory.

Moreover, and this is really the most important aspect of Romney's taxes, his income is not primarily from dividends. Rather, it is from "carried interest". What this means is that Romney took someone else's money and earned a profit by using it to buy and sell companies. That profit was never a part of any corporations's profit line and, hence, was never taxed. So, there is not even a theoretical argument that the income was double taxed.
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