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Argue whether current tax rules on dividends are fair or not

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Take a position as to whether the current tax rules related to the payment of dividends are fair. Support your position with examples. Propose an alternative to the current tax rules that would be fairer.

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Solution Summary

Your tutorial is 223 words and disagrees with the current dividend policy and recommends a new policy, giving examples to support the idea.

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I do not think the current treatment of dividends is fair. I believe they should be taxed once, not twice. When a corporation makes $10,000, it is taxed. Then when it distributes this amount to its shareholders, the owners again are taxed. This double taxation is not reasonable. When we ...

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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