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You can (in principle) do this anyway - the jet and the yacht are expenses, and you only pay corporate income tax on the profit ($1M - cost of yacht - cost of house ~= $0).

In practice the IRS will treat use of the yacht as taxable income paid to the user.

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Maybe but I'd bet if you surveyed all the corporate jets out there and found what percentage were being treated as personal taxable income you'd find it pretty low.

Perhaps, but its moot. Taxing corporations does not fix this problem (since money spent on yachts is treated as expenses and not taxed as income) and eliminating corporate income tax would not change this.

In fact, eliminating corporate income tax would discourage this, since it makes alternatives (namely taking a profit and reinvesting in the business) cheaper.

It would seem like fixing that problem directly rather than using a roundabout system of taxing corporations, which comes with its own set of problems, would be the better way to go about things.

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