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by IncRnd 3072 days ago
> It feels like double dipping if we expect them to pay taxes on repatriating the money and then also taxing the wages that the repatriated money allows them to pay.

That is how our federal government constantly engages in double taxation. A corporation makes money + pays taxes, then pays employees who pay taxes. Those employees buy goods and services as well as have their own companies, all of which pay taxes on their incomes.

After five layers of this double-dipping, an initial million dollars only has $327,000 left, with the other two thirds having been paid in taxes (at an average of only 20%). Many people pay far more than 20% in federal taxes. The federal government takes in taxes most of every dollar this way.