Originally posted by Darth Executor
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Originally posted by Darth Executor
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- retained earnings (for use in later years),
- investment in the company (buying stuff, etc.),
- dividends to shareholders.
#1 is temporary, because in future years it will either stay retained earnings (doing nothing), or become #2 or #3.
#2 should not be taxed, IMO, because it disincents companies to grow.
#3 is income to the shareholders - if it is taxed as regular income, then it is being taxed. The boss does not get away with not being taxed - they simply pay it as personal income instead of business income.
Am I missing something?
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