Dividend Taxation and Corporate Governance

摘要: The U.S. government subjects corporate dividends to double taxation: It first taxes income, then the same income again when shareholders receive paid out of income. Until 2003, individuals were taxed on dividend at rates as other forms resulting in overall much higher than those most countries (PriceWaterhouse-Coopers, 2003a, b). After passage Job Growth and Taxpayer Relief Reconciliation Act are still after-tax but individual tax rate was cut a maximum 15 percent. We argue that this act, by substantially reducing taxation not eliminating such taxation, strikes useful balance between competing objectives. Many economists have long opposed because high imposed They argued deterred investment distorted financing decisions, favoring debt over equity earnings retention payouts. More recently, financial stressed how (and consequently reduced retained earnings) can improve governance discouraging empire-building financed earnings.