[magila]

Ok, but corp owner still can't benefit from the gain without generating a taxable event. Either they pull the money out directly or receive a benefit in kind. In either case it gets taxed as regular income so in that sense the person would actually be in a worse tax situation assuming capital gains is taxed at a reduced rate.

[3pt14159]

Most things that wealthy people want that has to be purchased with after tax dollars, like I don't know a flight to visit a family member, they can pay for just fine out of the pittance they pay themselves in salary.

The real trick they pull is making everything a company. A man building a model rocket at home? That's with after taxed dollars. A man building a rocket to the moon? That's a business. Goes for all sorts of things. At some point you have to say, no, corporations please pay tax as you make it.