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> When it comes time to take money out, you pay a fat dividend with 15% dividend tax rate, instead of 35% income tax rate. If we were to eliminate the corporat
by bradleyjg 12y ago
> When it comes time to take money out, you pay a fat dividend with 15% dividend tax rate, instead of 35% income tax rate.
If we were to eliminate the corporate tax we'd need to simultaneously eliminate the preferred tax status of qualified dividends and long term capital gains. We'd also need to crack down on wage substitutes (aka fringe benefits).
Still think it'd be a worthwhile tradeoff.
- justincormack 12y agoThe dividend tax rate is mainly there so as to avoid double taxation, so it would make sense to remove it.