Dividends, Double Taxation of

Research Report

Dividends, Double Taxation of

From The Encyclopedia of Taxation and Tax Policy
October 1, 1999

Abstract

The double taxation of dividends comes about in the U.S. tax system because corporate profits are taxed once by the corporate income tax and then again when these profits are distributed to shareholders. This article describes the consequences of double taxation in terms of how corporations pay out their profits and finance their expenses.

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