Chapter
The Disparity Between Taxation on Interest and Dividend Payments
33:37 - 40:10 (06:32)
This episode discusses the disparity in taxation and its effects on stock buybacks and equity financing. It also explores how corporate taxes impact a company's reinvestment of profits and employee compensation.
Clips
This episode discusses the potential benefits of cutting corporate taxes, such as reinvestment, higher employee pay, and lower consumer prices, but also highlights the concerns around releasing equity shares and double taxation on individual shareholders.
33:37 - 37:17 (03:39)
Summary
This episode discusses the potential benefits of cutting corporate taxes, such as reinvestment, higher employee pay, and lower consumer prices, but also highlights the concerns around releasing equity shares and double taxation on individual shareholders.
ChapterThe Disparity Between Taxation on Interest and Dividend Payments
EpisodeHow Corporate Taxes Work
PodcastStuff You Should Know
The disparity between taxation of interest and dividends has paved the way for stock buybacks instead of companies reinvesting their profits as promised.
37:18 - 40:10 (02:52)
Summary
The disparity between taxation of interest and dividends has paved the way for stock buybacks instead of companies reinvesting their profits as promised. Deductibles for dividends are not allowed, but interest is, favouring the bigger companies to raise money easily with the added benefit of interest deductions.