One Argument Advanced in Favor of Raising the Tax on Dividends

question 56

Multiple Choice

One argument advanced in favor of raising the tax on dividends is that

• A) dividends increase the wealth of shareholder's which could lead to inflation.
• B) the tax revenue gained will be used to help pay for the federal stimulus package.
• C) dividends accrue mostly to low income individuals, thus increasing income inequality.
• D) it increases the incentive for corporations to maximize shareholder value.

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