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Technology Stocks : Dell Technologies Inc.
DELL 133.78-0.1%Nov 14 9:30 AM EST

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To: TigerPaw who wrote (170634)8/16/2002 11:18:33 AM
From: BWAC  Read Replies (1) of 176387
 
Dividends are taxed first when they are earnings of the corporation. In theory you have to have corporate income/earnings to pay a dividend. Corporate Income is taxed.

THEN the dividend (from taxed corporate income) is paid to the shareholder. The Shareholder then again pays income tax on this money.

Double Taxation. Once at the Corporate Level. Again at the Shareholder level.

What started out as $1.42 in earnings. Taxed at 30% would be after tax earnings of $1.

IF that $1 was paid out in dividends the shareholder would be taxed again. Assume 30%. Now the shareholder has a net of 70 cents.

Government got 72 cents of the Corporate Earnings. Investor got just 70 cents.
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