wrote in message
...
On Thu, 8 Apr 2010 10:37:19 -0700, "nom=de=plume"
wrote:

As long as that profit remains in the corporation and gets used to
build the business, the government should leave it alone, When it gets
pulled out, either as compensation, perks or dividends it should be
taxed.


When profit remains and is used to build the business, it's called a
business expense, which is deductible. Sounds like the incentive would be
not to pay anyone much of anything. I think CEO pay should be tied to
performance by an independent board. A lot of excessive CEO pay is due to
the stacking of the Board of Directors by the CEO.

It is not an expense until you spend it. If you bank the profit it
would be taxed and that money would not be available to build the
business. That encourages business to borrow money instead of saving
for expansion. Certainly the interest is deductible but it is still
paying more than you should for things because the banker gets a cut..


Umm... you said, "use it to build the business." And, I replied, "used to
build the business." How does one use it without spending it...
infrastructure, new equipment, etc.?

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Nom=de=Plume