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Assignment 3: Tax Reform - Essay Example
Finance & Accounting
Pages 5 (1255 words)
Taxes and Investors The interest charged by corporations is of great interest to the investors for this is means of raising capital with debt instead of equity. Nothing compares to the tan reduction of dividends that is paid to the shareholders. Tax on dividends is paid twice, once by the corporation and then by the shareholder himself…
Reducing the Tax Bite The tax impact on dividends as well as interest sustained in many ways like owning stocks in an account that is tax free, or by holding stocks that increase in value with time and pay no dividends. Tax Issues it is being argued that the tax structure enforces an extremely high percentage which makes it extremely difficult for corporation in the United States of America to attract investors and raise capital. This in turn has a linchpin affect because no new jobs are created and the entire economical development process is hindered. It is believed that the tax rate needs to be lowered from the current 35% to make the economy more sustainable. Tis argument is supported by the fact that tax rates in the U.S have been reducing for 30 years now but the corporate tax are at an all time high. They point out that in the last decade alone, many countries have reduced their corporate tax rate to make their economy more competitive. However, all is not sunny and there are several large4 companies, 1000 at least which are not paying their fair share of what they owe to the government in form of taxes. ...
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