Loopholes when corporate tax rate is lower than personal tax rate?

Let's say I am an American and 100% owner of an American corporation and I'm in the highest 39.6% personal income tax bracket and corporate tax rates have been lowered to 15%. I want to contribute to a political action committee (PAC). If I took profits from the corporation and then contributed personally I'd pay 39.6%. However, if I have the corporation directly contribute to the PAC, I only have to pay 15%. Is this correct? I realize I couldn't just have the corporation pay all my expenses in life as that would count as personal income, though situations like this where I don't directly benefit seem like it might be a loophole.

Posted Apr 26, 2017, 5:40 PM UTC

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