4 ms·
Yes, but that’s not the whole picture. If the value of the company goes up, shareholders capture value as capital gains which has a very low tax rate.
by aqme28 2y ago
Yes, but that’s not the whole picture. If the value of the company goes up, shareholders capture value as capital gains which has a very low tax rate.
- arcticbull 2y agoLow... ish... depending on where you are. Short term gains are taxed as ordinary income, long-term gains are taxed up to 20% (already the corporate rate) and states like California treat it as ordinary income exposing you to another up to 13.3%
- aqme28 2y agoIt's still never higher than income tax, which is what the parent comment was comparing to.