Comment by subarctic
3 months ago
> alternative to paying tax is paying shareholders a dividend
I thought corporate income tax was a tax on profits, and if a company pays a dividend that doesn't lower profits so wouldn't that be after taxes?
3 months ago
> alternative to paying tax is paying shareholders a dividend
I thought corporate income tax was a tax on profits, and if a company pays a dividend that doesn't lower profits so wouldn't that be after taxes?
A higher corporate tax rate leaves less available to issue to shareholders from net income.
Exactly