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I've wondered if it wouldn't be better to shift the tax code to bias companies toward paying dividends, as used to be more universal among profitable firms. The
by rendang 2y ago
I've wondered if it wouldn't be better to shift the tax code to bias companies toward paying dividends, as used to be more universal among profitable firms. Then the shareholders will have the appropriate progressive income tax bracket applied.
- travisb 2y agoThe reason companies pay in shares and not dividends anymore is _because_ doing paying out profits using a share (buyback) is more tax efficient. Especially for recipients who want to let it ride in the stock market. It doesn't seem like a genie you'll be able to put back into the bottle without reducing the net tax take.