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Corporate dividends are actually taxed twice. Once as profit to the corporation, and a second time as "income" to the recipient. Note that these two words are d
by SomeHacker44 9y ago
Corporate dividends are actually taxed twice. Once as profit to the corporation, and a second time as "income" to the recipient. Note that these two words are different. (Not applicable to S corps.)
- Retric 9y agoYou assume both the company and the person are in the US, further dividends are not taxed as normal income so you can't say even close to 2x the income tax rate. I there are plenty of cases where even paying both you save money vs taking the same surplus as normal income.
- philwelch 9y agoIf you wanted to do a revenue-neutral reduction or elimination of corporate taxes, you would probably increase the upper-bracket income and capital gains rates to compensate. This would have the added benefit of reducing effective taxes for middle-income dividend recipients (like retirees and middle-class investors) while increasing it for the billionaires that most corporate tax proponents actually want to target. Which, once again, is not Dropbox's problem to solve.