Earlier quoted context omitted.
> Double taxation occurs when a corporation is subject to corporate tax and then pays a dividend, which is after tax, but counts as income to the investor. There are arguments to be made that this is fair or unfair. Even calling it double-taxation seems like BS. Generally, we tax at the point of exchange: income, sales, etc. Money moves around endlessly. It's taxed when the consumer pays the corporation (often twice!…
I don't disagree, but S-corporation profits are only taxed once, regardless of distribution, and C-corporation profits are taxed on the corporate tax bill even if distributed in a dividend to shareholders. It's a little peculiar.
Still. The corporate tax rate is way lower than personal tax. In my country some workers pay over 50% tax on their income, while corporation they work for pay 10% or less if they have good accountants.