Salaries are a deductible expense for any business entity, so that money is never taxed twice by any reckoning.
The debate about double taxation of corporate profits relates to taxation of dividends, which are neither exempt nor deductible from a business' taxable income. Because shareholders are one and the same as the corporation according to some strains of legal and economic reasoning, by taxing dividends you've taxed the shareholders' profits twice.
If you control a corporation, you could achieve the same tax treatment as pass-through entities merely by paying yourself a salary instead of dividends. But if you did that, pass-through entities are easier because there are fewer formalities involved. The real gripe is that because dividends are taxed at a flat 15-20%, paying yourself in tax-preferred dividends is a tantalizing prospect but-for the supposed double taxation "problem".
The debate is admittedly a little more nuanced when discussing passive investments, but that's a different context than family farms.
The debate about double taxation of corporate profits relates to taxation of dividends, which are neither exempt nor deductible from a business' taxable income. Because shareholders are one and the same as the corporation according to some strains of legal and economic reasoning, by taxing dividends you've taxed the shareholders' profits twice.
If you control a corporation, you could achieve the same tax treatment as pass-through entities merely by paying yourself a salary instead of dividends. But if you did that, pass-through entities are easier because there are fewer formalities involved. The real gripe is that because dividends are taxed at a flat 15-20%, paying yourself in tax-preferred dividends is a tantalizing prospect but-for the supposed double taxation "problem".
The debate is admittedly a little more nuanced when discussing passive investments, but that's a different context than family farms.