Implicit taxes in high dividend yield stocks

Article Abstract:

A study of implicit taxes in high dividend yield stocks was conducted. This research focused on stock price changes resulting from an unanticipated recommendation to reform how dividends are taxed to corporate investors, thereby avoiding problems encountered by earlier studies, which found difficulty differentiating tax effects and effects resulting from cross-sectional differences in risk. Findings revealed that preferred stocks generated a -1% abnormal return around the proposed reduction in the dividends received deduction, indicating that preferred stocks carry implicit taxes due to the tax preference offered to corporate investors. A portion of the increased tax burden is transferred from investors to corporate issuers. High dividend common stocks did not lead to similar market response and therefore do not bear implicit taxes due to dividends received deduction.

Stocks, Dividends, Investments

---

Heading off an IRS audit

Article Abstract:

The IRS defines 'independent contractor' very narrowly, and conducts a compliance check whenever a company classifies any workers as such. Proper preparation for the procedure can help avoid a full audit. Business owners should let their tax attorney or accountant do the talking.

Public Finance Activities, Corporate Income Taxes, Laws, regulations and rules, Corporate taxes, Corporations, Independent contractors, Payroll tax

---

Similar abstracts:

• Abstracts: The hidden danger in bond yields. Selected yields. Advertising and profitability: testing alternative hypotheses
• Abstracts: What companies are reporting. Management and reporting of environmental liabilities
• Abstracts: Focusing on true costs in a service organization. The virtual HR organization
• Abstracts: Set your rules on E-mail. Head of small-business panel vows war on federal rules. New rules on immigration
• Abstracts: Corporate globalization - a new trend. Reaching Japan's markets

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.