My compliments to the author of “ An Opinion on Dividends’ Taxation ” who stated that double taxation of dividends is a myth.
In addition to his logical presentation, corporate income is subject to the “art” of accountancy which is ofttimes elastic: Declared dividends are precise, exact and determined by the whim of corporate boards.
In the case of a corporation with a current deficit that declares a cash dividend, where is the double taxation?
The myth of double taxation—like other myths—is politically inspired.
Eli Mason, CPA
New York City