Before passage of the Jobs and Growth Tax Reconciliation Act of 2003, some argued to completely eliminate the tax rate on dividends. Calculate the tax disadvantage to organizing a U.S. business today if the Jobs and Growth Tax Reconciliation Act of 2003 passed with this provision. Consider the following firm: All earnings will be paid out as dividends, and operating income before taxes will be $1,500,000. The effective corporate tax rate is 35%, and the tax rate on corporate dividends is 0%. The average personal tax rate for partners in the business is 35%. What is the tax disadvantage?