AI
Wednesday, February 22, 2012 11:40:31 PM
Thank God Canada doesn't think like this. As I stated previously - Earnings in a corporation when distributed in the form of salaries, or Dividends end up aty the personal level being taxed at the same exact rate per dollar earned in the corporation or if that same dollar was earned personally.
Not all corporations are multi national Intels. Some are small or medium sized businesses owned by a small number of people, and dividends should not be penalized relative to salaries.
What you suggest would result in corporations losing their appeal - more private trust type setups would be the result, or simply corporations moving out of high tax environemnts all together. Maybe Intel could "pay" shareholders a salary, so that at least they can get a tax deduction on that expenditure under your scheme
In the end, any move to increase dividend taxation will result in less government revenue
Not all corporations are multi national Intels. Some are small or medium sized businesses owned by a small number of people, and dividends should not be penalized relative to salaries.
What you suggest would result in corporations losing their appeal - more private trust type setups would be the result, or simply corporations moving out of high tax environemnts all together. Maybe Intel could "pay" shareholders a salary, so that at least they can get a tax deduction on that expenditure under your scheme
In the end, any move to increase dividend taxation will result in less government revenue
