Lindhe, Tobias; Södersten, Jan Edvin - 2021
This paper reconsiders the effects of dividend taxation. Particular attention is paid to the form of the "equity trap …", that is, the extent to which cash paid to the shareholders must be taxed as dividends. Our analysis shows that Sinn's (1991 … misleading comparison across two different regimes for the equity trap. Contrary to Sinn, we find that when dividends are paid …