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View Diary: Eliminate corporate tax, seriously (422 comments)

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  •  Corporations can't deduct dividends (2+ / 0-)
    Recommended by:
    thanatokephaloides, charliehall2

    so whether or not they pay dividends has no impact on whether they pay taxes.

    "If one cannot enjoy reading a book over and over again, there is no use in reading it at all." — Oscar Wilde

    by chicagobama on Mon Aug 25, 2014 at 02:00:49 PM PDT

    [ Parent ]

    •  But management and directors hold lots of shares (0+ / 0-)

      And they who get the dividends really do care.  When top rates came down under Reagan and then Bush it made more sense to pay out huge sums in dividends because the tax was comparatively overly so low.  Before earnings were plowed back into the company.

      Don't bet your future on 97% of climate scientists being wrong. Take action on climate now!

      by Mimikatz on Mon Aug 25, 2014 at 04:24:26 PM PDT

      [ Parent ]

      •  That makes no sense unless people anticipated (0+ / 0-)

        a tax cut.

        At the end of the day, when you buy a stock you are buying its cash flow.  Unless you expect a tax cut there is no additional value to leaving money in the company to compound and be taxed later at higher tax rates than at lower tax rates.

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