The author is forgetting about corporate tax. The income Gingrich claims as salary can be claimed as an expense to the corporation and thus reduce its corporate income tax. His income claimed as dividends or capital gains is not counted as a business expense. It is thus taxed twice: once as income to the corporation and then a second time as personal income to Mr. Gingrich.
“His income claimed as dividends or capital gains is not counted as a business expense. It is thus taxed twice: once as income to the corporation and then a second time as personal income to Mr. Gingrich.”
You are mistaken. Gingrich is using an S Corporation so the salary or dividend flows to his personal return without tax consequences to the S Corporation. The issue is the additional Medicare payroll tax.
Exactly. When I'm listening to the talking heads, they never mention anything about double taxation. Their analysis is shallow.
The same for their analysis of tax policy. Obama wants to raise taxes, so that means more money. The republicans want to decrease taxes, so that mean less money. Stupid and shallow.