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.
“When I’m listening to the talking heads, they never mention anything about double taxation. Their analysis is shallow.”
You do not understand Subchapter S corporations. The income is not double taxed. The salary and dividends flow to the personal return in which both are taxed. The difference is that payroll taxes are assessed on salary not dividends. Since the Medicare payroll tax is unlimited, the dividends escape the Medicare payroll tax. I am not complaining about Gingrich’s usage of a subchapter S corporation, just indicating that there is no double taxation.
I believe that Obamacare has effectively closed this tax treatment as it imposes a surcharge on the Medicare payroll tax levied on all income.