Thanks Mike. I agree that dividends are subject to a lower tax rate. Dividends are after-tax earnings that corporations pay to its owners. However, the corp must also pay tax on its earnings according to the attached IRS link.
“The profit of a corporation is taxed to the corporation when earned, and then is taxed to the shareholders when distributed as dividends. This creates a double tax. The corporation does not get a tax deduction when it distributes dividends to shareholders. Shareholders cannot deduct any loss of the corporation.”
How in the Hell can the American taxpayer can keep up with this crap? Hire a professional tax advisor.
Find out what takes place in the formation of a corporation and the resulting tax responsibilities and required forms.
www.irs.gov