If you are on the higher tax bracket, the Government would receive much more than at the Company tax rate of 30%
My point was; what happens if the Company does not pay a dividend and simply spends all its revenue on growth. That way no dividends and so no tax.
Sure, when an investor sold their shares there would be capital gains tax, but that would no provide the Government with a regular income stream
Also; NO Company ever pays out 100% of its profits, therefore the Government would also miss out on revenue
Personally I don't think there is anything wrong with the current system.
For Companies like BHP, they pay tax at 30% and for each 70c in dividends there is an attached 30c credit that is added to your taxable income and then you pay tax at whatever marginal rate you are on
BHP Dividend Guestimate, page-665
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$42.99 |
Change
0.390(0.92%) |
Mkt cap ! $218.1B | |||
| Open | High | Low | Value | Volume |
| $42.69 | $43.23 | $42.51 | $238.2M | 5.552M |
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|---|---|---|
| 1 | 14181 | $42.97 |
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| Price($) | Vol. | No. |
|---|---|---|
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