Also, deductions and so-called loopholes are often designed to encourage certain types of behavior by corporations that should result in more jobs and or increased spending. Dividends are already taxed to shareholders. Corporations that cannot identify legitimate plans for their retained earnings are already assessed a 20% penalty on those excess earnings. I believe that the IRS should be more assertive in assessing this 20% surcharge. That would encourage corporations to spend the money, the stimulating the economy, or pass it on to shareholders where they will be assessed the dividend tax
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