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In the United States, interest income received by corporate bondholders has been taxed at ordinary income rates, whereas capital gains and dividends received by shareholders
In the United States, interest income received by corporate bondholders has been taxed at ordinary income rates, whereas capital gains and dividends received by shareholders have often been taxed at lower rates. Suppose the President proposes and Congress approves a plan to raise the corporate tax rate and tax dividends and capital gains at the same rates that apply to ordinary income. What effect might this have on corporate capital structures?
In the United States, interest income received by corporate bondholders has been taxed at ordinary income rates, whereas capital gains and dividends received by shareholders have often been taxed at lower rates. Suppose the President proposes and Congress approves a plan to raise the corporate tax rate and tax dividends and capital gains at the same rates that apply to ordinary income. What effect might this have on corporate capital structures?
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