the after-tax profits that are distributed to stockholders are called dividends.
the after-tax profits that are distributed to stockholders are called dividends.
the after-tax profits that are distributed to stockholders are called?
dividends
in addition to income tax, companies were also subject to a profits tax, which was deducted from company profits when determining the income tax liability. it was a differential tax, with a higher tax rate on dividends (profits distributed to shareholders) than on profits retained within the company. by penalising the distribution of profits, it was hoped companies would retain profits for investment, which was considered a priority after the second world war. the tax did not have the desired effect, so the distributed profits tax was increased by 20% by the post-war labour government to encourage companies to retain more of their profits. at the time of hugh gaitskell's 1951 budget, the profits tax was 50% for distributed profits and 10% for undistributed profits.
united kingdom corporation tax
u.s. corporate after-tax profits were at record levels during 2012 while corporate tax revenue was below its historical average relative to gdp. for example, u.s. corporate after-tax profits were at record levels during the third quarter of 2012, at an annualized $1.75 trillion. u.s. corporations paid approximately 1.2% gdp in taxes during 2011. this was below the 2.7% gdp level in 2007 pre-crisis and below the 1.8% historical average for the 1990–2011 period. in comparing corporate taxes, the congressional budget office found in 2005 that the top statutory tax rate was the third highest among oecd countries behind japan and germany. however, the u.s. ranked 27th lowest of 30 oecd countries in its collection of corporate taxes relative to gdp, at 1.8% vs. the average 2.5%.
unemployment in the united states