Post #17671 by OrmontUS on the Berkshire Hathaway board

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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)

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I ran into another rational for the tax when my business was a standard "C" corporation (subsequently, I changed it to "Subchapter S" which has a different set of tax challenges). The "revenuers" would have taken it as a subterfuge if I paid out my annual accumulated cash as dividends rather than as wages. Tax laws seem to be created with the idea that their purpose is to generate the highest tax collection rather than the highest "in the pocket" net profit for business owners.

Jeff

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