You are right. My math in the post-distribution was wrong. But the implications are still valid. There is a considerable tax on investment income. And yes,

You are right. My math in the post-distribution was wrong. But the implications are still valid. There is a considerable tax on investment income. And yes, corporations have figured out ways around paying the tax, but not in an efficient or socially useful way. Corporations are forced to reinvest beyond their competency instead of just distributing returns and allowing investors to re-allocate capital.