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El Twatto Twats on Taxes

The P³ tells us about American taxes:

About which he says:

A class struggle has taken place in the United States and the wealthy classes have won. 20% of the total US tax burden has been shifted from corporations, most of which are owned by the wealthy, to working people. The attack on tax havens affected not only the government’s right to taxes, but the people of the world as well. As corporate profits have increased – and so have they – corporate tax revenues have decreased.

People who actually know what they are talking about would suggest otherwise. US law distinguishes between C companies – which pay corporation tax – and S companies, where the owners pay individual income tax on their share of profits.

In the past 50 years there has been a significant transition – of perhaps 50% of the US economy – from the C-body shape to the S-body shape. Thus, a significant part of the taxation of corporate profits has shifted from this corporate share to this work share. Since the company share shown there contains corporation tax.

Ritchie’s argument really is that if he switched from a Ltd company to an LLP for his work, it is evidence that the remaining limited liability companies will have to pay more income tax.

But to understand that, one would have to know something about taxes ……

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