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Businesses pay taxes through individual shareholders

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Thursday, June 01, 2006

The letter by Chuck Sheketoff [IT’S TIME TO END THE CORPORATE TAX DODGE, May] makes me wonder if he is naïve or disingenuous. Since the Federal Tax Reform Act of 1986, business formations have overwhelmingly chosen structures that pass corporate tax profits directly to individual shareholder tax returns at a 9% Oregon tax rate rather than the 6.6% rate for C corporations. Businesses are paying one-third more as a result but it shows up on the individual taxpayer share.

Rob Freres
Freres Lumber Co.
Lyons

 

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