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Old 11-11-2011, 09:40 AM  
raymor
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Join Date: Oct 2002
Posts: 3,745
Quote:
Originally Posted by nation-x View Post
I tried to edit my last post, Ray. I wanted to point out to you that there is more to that double taxation argument than meets the eye. Dividends paid by corporations to their stockholders are not a deductible expense, however, what they do from an accounting perspective is to reduce Retained Earnings. Retained Earnings are defined as accumulated profits and losses since the company became incorporated minus dividends that have been paid.
Educate me and explain how that matters.
It's taxed once when it's earned and taxed again when someone actually gets their hands on it, whether that's immediately or whether it's retained for a few periods first, right?

I'm the sole stockholder in RMEE Inc, so if there's something I'm missing here that affects the taxes that have to be paid (eventually) I'd appreciate the education.
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