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With regard to dividends the tax situation is what is causing the bloated and shitty behavior in the first place. In countries with Dividend Imputation (https:
by Negitivefrags 9y ago
With regard to dividends the tax situation is what is causing the bloated and shitty behavior in the first place.
In countries with Dividend Imputation (https://en.wikipedia.org/wiki/Dividend_imputation https://en.wikipedia.org/wiki/Dividend_imputation) such as the one I live in, companies actually distribute the money they earn.
In the USA, wasting money on bloat is effectively incentivised by the tax structure because you can spend money that is already inside the company with an effective discount vs distributing it so that it can be invested elsewhere.
Owners should be withdrawing the profits of their companies. The current situation leads to bloat and stagnation.
- probe 9y agoNever heard of dividend imputation - thanks for sharing! Though I still don't agree with withdrawing profits - I think it's smart to reinvest profits into the business (just look at Amazon).