3 ms·
>I don't believe corporations in the U.S. pay taxes on dividends they disburse. Generally the principle in the U.S. is that whenever you receive money you get t
by travisp 11y ago
>I don't believe corporations in the U.S. pay taxes on dividends they disburse. Generally the principle in the U.S. is that whenever you receive money you get taxed.
This is not true. While many countries do not do this, dividend payments are not tax deductible in the US. In fact, they are double-taxed (at both the corporate and individual level) which is one of the reasons/arguments for individual taxes on dividends being taxed lower than income tax rates.
- yequalsx 11y agoI believe the principle is that whenever you receive money you get taxed. There are some exceptions and money is taxed at different rates depending on the way you receive it. But for the most part the idea is that whenever you directly receive money there are tax implications. This seems reasonable to me. In the case of corporations and dividends to shareholders you are correct. I don't know of any other such examples.