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Unformatted text preview: three tiered rate: 1991: 15%(50,000), 25 (75,000), 34 (75,000+). Now slightly higher. Structure: tax on profits Revenues Costs wages Printed: Econ 275 - Public Finance - Winter 1994 - 3/31/94 - Lesson #24 - leson24b.275-- Page --interest depreciation example: trucking company purchases rig for 100,000. It will be using the truck for 5 years. Alternatives depreciation schedules full depreciation in first year. 100,000 less in taxable profits in first year. 34% bracket implies that profits go up by 34,000 Double taxation of dividends. Taxed at corporate rate, taxed as individual income. Why do firms pay dividends. It's giving money to the tax collector. 60 percent of after tax profits payed out in dividends. Printed:...
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This note was uploaded on 07/08/2010 for the course ECON 275 taught by Professor Mcintyre during the Winter '05 term at BYU.
- Winter '05