Federal taxes
However, it may be a good idea. federal taxes Free tax software canada. The American system of corporate taxation places American corporations at a disadvantage when competing with companies from other countries. Making dividends deductible to our American corporations will make these companies more profitable, allow them to compete more effectively in the international marketplace, generate more sales, expand and hire more employees. Corporations have little incentive to distribute profits because profits distributed in the form of dividends are non-deductible for federal and state corporate tax purposes. federal taxes Earned income tax credit. Deductibility of dividends will encourage more companies to distribute dividends. Microsoft has $40 billion in cash; many other high-tech companies also are cash-rich. If dividends were deductible either from current or accumulated earnings and profits, cash-rich companies would be encouraged to distribute some of that cash to their shareholders. federal taxes Lee county tax collector. The shareholders of growth/tech companies are demographically diverse. They include people more likely to spend distributed dividends on durable and other goods/services. Corporate deductibility of dividends will place a lot more money in circulation and create additional disposable cash. There will be little, if any, loss of revenue. In fact, there may be an increase. The top individual rate is higher than the top corporate rate. The tax revenue is not disappearing, as it would if the dividends were non-taxable. Rather, taxation on that revenue is being shifted to the persons who receive the dividends, many of whom will be paying tax at a higher rate than will the corporation that issued and deducted the dividends. Re-enactment of the Investment Tax Credit: The biggest loss of sales and jobs has occurred in the high-tech and communications sector. We need to get people buying and leasing durable equipment. It is the manufacture and distribution of durable equipment that provides the strongest long-term stimulus to the economy while employing our citizens in high-paying jobs. An ITC with which business enterprises could receive a tax credit for the purchase of durable goods would spur the purchase of those goods much more quickly than any general tax reduction.
Federal taxes
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