Intel Corp (INTC)

[Professor MD]

We know Intel pays approx 27.2% income tax on its EBT, regardless of whether Intel pays a dividend or not.

I want to know when Elmer pays "his" 27.2%.

All I see is an expense that reduces Intel, Incorporated's net income, not Elmer's.

The income tax that Intel pays on its “EBT” does not include the tax on dividend because dividend is not earning. An additionall tax is levied on Intel, based on the dividend it pays its shareholders. The dividend is taken out of Intel's earning but the income tax is not reduced.

Most IRA contain dividend bearing shares. The value of these share will fall if the tax on dividend (but not the tax on earning) will triple.