09-25-2020, 01:04 AM
A C corporation pays taxes on the front end and on the back end. The biological person who owns the corporation is taxed on money before it is distributed to them and after it is distributed to them. The tax is highly unfair, especially since the government hasn't purchased any shares in the company, but somehow is entitled to 21% of the profits - not the shareholder. Yet partnerships pay zero tax and also have unlimited life.
Limited liability protects the person from judgement and is a fair system. If one contributed $1000 in capital to a company, and received a 1% ownership, their liability is limited to the 1% where as the rest of the owners would make up for the other 99% of liability.
Of course an individual is capable of creating a monopoly, food deserts in inner cities, or real estate investors who buy up blocks of housing who control the rental prices by blocking competition. Gas stations in the middle of nowhere always seem to charge way more than gas stations that have plenty of competition.
Unregulated free markets are regulated by the consumer, by either voting with their feet or through a court system. It worked very well in the 19th century. Those companies that provide crappy services go out of business, while those that provide services and products people value get rewarded with profits. Capitalism is the fairest system of all.
Limited liability protects the person from judgement and is a fair system. If one contributed $1000 in capital to a company, and received a 1% ownership, their liability is limited to the 1% where as the rest of the owners would make up for the other 99% of liability.
Of course an individual is capable of creating a monopoly, food deserts in inner cities, or real estate investors who buy up blocks of housing who control the rental prices by blocking competition. Gas stations in the middle of nowhere always seem to charge way more than gas stations that have plenty of competition.
Unregulated free markets are regulated by the consumer, by either voting with their feet or through a court system. It worked very well in the 19th century. Those companies that provide crappy services go out of business, while those that provide services and products people value get rewarded with profits. Capitalism is the fairest system of all.
MA in progress
Certificate in the Study of Capitalism - University of Arkansas
BS, Business Administration - Ashworth College
Certificates in Accounting & Finance
BA, Regents Bachelor of Arts - West Virginia University
AAS & AGS
Certificate in the Study of Capitalism - University of Arkansas
BS, Business Administration - Ashworth College
Certificates in Accounting & Finance
BA, Regents Bachelor of Arts - West Virginia University
AAS & AGS