In 2003, the United States enacted a tax reform that reduced, but did not eliminate, individual dividend income taxes …. Cutting the dividend tax deprives corporate insiders of a justification for retaining earnings to build unprofitable corporate … held. In addition, preserving the existing tax on intercorporate dividends, in place since the Roosevelt era, discourages …

This paper analyses the optimal taxation of dividends and other types of income from portfolio investment. We show that …, in an open economy, it is not desirable to offer double taxation relief for dividends paid by domestic firms to domestic … dividend income at the household level. A reduction of the tax burden on dividends is therefore merely an undesirable subsidy …

-related literature on dividends explores the implications of differential taxes on dividends and capital gains on stocks’ valuation and … firms’ propensity to pay out cash in the form of dividends. The issues investigated in this literature are of central … perspective, dividends should be minimized. We review the theoretical as well as empirical literature on Signaling …