Double Taxation and Corporate Capital Cost

@inproceedings{Sdersten1978DoubleTA,
  title={Double Taxation and Corporate Capital Cost},
  author={Jan Edvin S{\"o}dersten and Villy Bergstr{\"o}m},
  year={1978}
}
Several attempts have been made to determine the tax differential between the corporate and non-corporate sectors of the economy, implied by the present double taxation of corporate source income. A common feature of these studies is the assumption that the retention of corporate profits gives rise to capital gains on a one-for-one basis. By this assumption, the tax burden on retained earnings is identified with the tax on capital gains. In view of the preferential tax treatment given to… CONTINUE READING