On Aug 31, 2010, at 5:12 PM, Max Sawicky wrote:
> For a business you could say interest is taxed to the recipient, so taxation
> at the corporate level would be double-taxation. By that logic they should
> deduct dividends too. Or not deduct interest to have parity with dividends.
I think the logic is that interest is a cost of capital, while dividends are a distribution from profits.
Doug