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Response to Doctor_J (Reply #1)

Mon Jul 14, 2014, 07:21 PM

3. Causing the IRS to change the S-corp rules would do other things too

A while back someone posted to DU a list of Wall Street flow-through entities. (I remember that Kohlberg Kravis Roberts was on it, and I believe Bain Capital was as well.) These highly profitable entities are hiding their wealth behind a tax structure meant to keep Joe's Plumbing Inc. and Frank's Medicinal Marijuana Farm Inc. from having to pay taxes at the 35 percent rate.

My feeling is, once you hit a million or so in taxable income (considering that the tax system is structured to let you write off every expense in your business, which is fair, $1M in taxable income equates to somewhere between $10M and $100M in revenue, depending on what your business is), you need to be paying taxes at the full corporate rate.

The bonus: If we put the screws to Hobby Lobby based on their revenues (remember, they're booking somewhere between $2.5 billion and $3 billion per year in sales), rather than on this one issue, we've eliminated their "religious exemption" line. Which, as we've already seen, is probably the purest form of bullshit - until they decided Jesus hated morning-after pills, they were covered under their health plan.

No, it won't be easy. But let's face it: most of the people who are "boycotting" Hobby Lobby because of this decision weren't going in there anyway. Of course, "I'm boycotting Hobby Lobby because they're conducting a war against women" sounds better than "I don't shop at Hobby Lobby because I don't need any Jesus-themed papier-mâché trinkets to hang on my walls."

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jmowreader Jul 2014 OP
Doctor_J Jul 2014 #1
LineLineNew Reply Causing the IRS to change the S-corp rules would do other things too
jmowreader Jul 2014 #3
Igel Jul 2014 #2
BainsBane Jul 2014 #4
jmowreader Jul 2014 #6
BainsBane Jul 2014 #7
jmowreader Jul 2014 #10
freshwest Jul 2014 #9
ljm2002 Jul 2014 #5
Uncle Joe Jul 2014 #8
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