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April 07, 2008

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Mark Fetridge

Are corporations really unfairly taxed?

Corporations are established with the primary purpose of maximizing profits for shareholders. They are taxed in a manner that views their actions as ways to accomplish this goal. Any philanthropy directed at "warm-glow" is a contradiction unless you were to include this warm-glow in your definition of profit.

The laws regarding corporate tax are established for a for profit market, and their actions are taxed accordingly.

On the other hand, the laws regarding non-profits and their taxes are established for the "altruism market" and their actions are taxed and regulated accordingly. (They can not foray into the for profit market for example).

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