Proposal to Eliminate Double Tax on Dividends Could Boost Corporate Competitiveness
The U.S. corporate tax system is criticized for taxing business profits twice, once when earned and again when distributed as dividends. Integration proposals aim to eliminate this double tax to promote tax neutrality and remove economic distortions. Integration would level the playing field for corporations seeking capital, remove bias towards debt financing, and encourage distribution of earnings. It would also align the U.S. tax system with foreign counterparts.