In article ,
"HeyBub" wrote:


Suppose a company makes $10 million in profit and pays the entire sum to its
president as "salary." Presto, no corporate income tax! If, however, the
company paid the owner $1 million, the remaining $9 million would be subject
to corporate income tax of, say, 30%. The residual $5.4 million gets taxed
again as stock dividend.

Maybe, maybe not. Many, if not most, smaller companies like that
are Subchapter S companies which means they don't exist for tax purposes
and everything flows through to the shareholders personal taxes.