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**Snake Bitten** · April 24th, 2003, 10:27 AM

Can someone explain this to me?

1. A corporation turns a profit, and is taxed on that profit.

2. The beforementioned corporation distributes a portion of the profit to its shareholders in the form of a dividend, and the shareholder is taxed.

Wassup?

April 24th, 2003, 10:27 AM	#1
Snake Bitten Senior Member Snake Bitten is offline Join Date: Jan 2003 Posts: 10,726 Rep Power: 12	Why are Dividends taxed twice? Can someone explain this to me? 1. A corporation turns a profit, and is taxed on that profit. 2. The beforementioned corporation distributes a portion of the profit to its shareholders in the form of a dividend, and the shareholder is taxed. Wassup?