NY Times on Income Trusts
Something from the NY Times on the Income Trust Scandal, via CE, who has an expanded commentary, and here’s a big, dirty spoiler:
A whole lot of economists would argue that in this case, simpler is better. Corporate income ought to be taxed at the marginal tax rate of the individual who receives it, and individual investors should be the ones to decide whether they want to reinvest in the firm from which that income came or put the money in a different enterprise. But of course, if we did that, politicians wouldn’t be able to create special tax deals for special interest groups. and besides, where would our scandals come from then?
