Not really. Corporate profits are taxed, not revenue. Taxes aren't figured until salaries are already paid.
We're saying the same thing here. My point is that double taxation is avoided by figuring the taxes after salaries are paid out, which ideally would be brought to $0 because nobody wants to be double taxed.
I'm sure it's a lot more complicated than that. Companies aren't avoiding tax by giving all excess revenue to their CEO as compensation. That wouldn't really make sense at all.
The CEO is just another employee. Obviously they don't just give the CEO all the extra taxable profit... Why do you think end-of-year bonuses are given out at end-of-year? Because there's taxable income on the balance sheet and if it doesn't get bonus'd to employees then it would be sent to the Trump/Biden/whomeever is president's administration as taxes. Nobody's going to give you bonus points for paying extra taxes, but if your employees get a nice bonus they might stick around or work harder at least.
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We're saying the same thing here. My point is that double taxation is avoided by figuring the taxes after salaries are paid out, which ideally would be brought to $0 because nobody wants to be double taxed.
The CEO is just another employee. Obviously they don't just give the CEO all the extra taxable profit... Why do you think end-of-year bonuses are given out at end-of-year? Because there's taxable income on the balance sheet and if it doesn't get bonus'd to employees then it would be sent to the Trump/Biden/whomeever is president's administration as taxes. Nobody's going to give you bonus points for paying extra taxes, but if your employees get a nice bonus they might stick around or work harder at least.