tax burdens

Tom Lehman uswa12 at lorainccc.edu
Wed Oct 21 12:04:32 PDT 1998


Dear Brad,

Isn't the old saying, one in the hand is worth two in the bush.

Sincerely, Tom L.

Brad De Long wrote:


> Share buybacks and dividends are both ways of getting money out of the
> corporation into the hands of shareholders. The IRS takes a much smaller
> cut of the first than of the second--which leaves economists puzzled about
> why corporations ever do the second, because the first (taking the money
> you would have spent on dividends and using it to buy back shares) seems to
> be a cheap and easy way to expropriate part of the IRS's share of the
> corporation.
>
> Brad DeLong



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