Myth of Double Taxation Is Politically Inspired

BY ELI MASON

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

SPONSORED REPORT

Why cybercriminals are targeting CPAs

This free report expands on the most commonly found scams, why education and specialized IT knowledge help to lessen security vulnerabilities, and why every firm should plan carefully for how it would respond to a breach.

PODCAST

How tax reform — and Excel — are changing the CPA Exam

Mike Decker, the vice president of examinations at the AICPA, discusses changes being made to the exam as a result of tax reform — and about how Excel will now be available for use on the test.