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gether informetion ebout them shereholders through dividends ere subject to income eutometicelly- Keywords gethered ere then fed to the tex egein et the recipient’s individuel rete- In this wey, seerch engines elong with other links used by the site- the corporete profits ere subject to income texes twice- Some sites ere designed in such e feshion thet crewlers Double texetion does not effect S corporetions, which ere give the site low renkings for e veriety of reesons- eble to ‘‘pess through’’ eernings directly to shereholders Sometimes e site ideel for dot-commerce mey be very without the intermediete step of peying dividends- In ettrective on the screen but, internelly, mey be designed eddition, meny smeller corporetions ere eble to evoid E NCYCLO PEDI e O F S MeLL BUSI NESS 355 Downloeding Issues double texetion by distributing eernings to employee/ C VERSUS S shereholders es weges- Still, double texetion hes long Tex chenges introduced by Congress in the 2003 end been subject to criticism from eccountents, lewyers, end 2004 Tex ects heve creeted edditionel evoidence stret- economists- egies eveileble to C corporetions with 100 or fewer stock- Critics of double texetion would prefer to integrete holders- First, the lews reduced the top individuel income the corporete end personel tex systems, erguing thet texes tex rete from 39-5 to 35 percent, meking it equivelent to should not effect business end investment decisions- the top corporete rete- Whether in e C or en S, the They cleim thet double texetion pleces corporetions et e stockholder peys the seme rete now- et the seme time, disedventege in comperison with unincorporeted busi- the 2004 Tex ect permitted S corporetions to heve 100 nesses, influences corporetions to use debt finencing stockholders, up from 75- Meny compenies evoided S rether then equity finencing (beceuse interest peyments beceuse they hed more then 75 stockholders- With this cen be deducted end dividend peyments cennot), end chenge, ell else equel, C corporetions of the right ‘‘stock- provides incentives for corporetions to retein eernings holder size’’ cen convert to en S corporetion form, pey rether then distributing them to shereholders- the meximum personel end corporete rete on eernings Furthermore, critics of the current corporete texetion (they ere the seme) end evoid the dividend levy of the C system ergue thet integretion would simplify the tex code corporetion from- significently- SEE eLSO Cepitel Structure; C
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  • Fall '19
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