- Apr 25, 2014
- Reaction score
- Political Leaning
article said:The Senate Finance Committee held a hearing Tuesday on integrating the corporate and individual tax codes, specifically in terms of allowing corporations to deduct the dividends they pay shareholders from their taxes.
Senate Mulls Allowing Corporations to Deduct Dividends | Accounting Today News
Don't know if this will go anywhere, but it would be a step in the right direction. Letting corps deduct the dividends they pay to their shareholders would give them significant control over managing the income tax they pay and would give them incentive to pay out the excesses cash they do not need for expansion or operations. It might even ease the push for tax inversions. Probably needs to be combined with getting ride of the special dividend capital gains rates on the individual level to make up the revenue loss, but all in all I think this is good.