A tax policy wherein the individual tax rate on dividends is greater than the tax rate on capital gains supports a low-dividend policy.

Name: A tax policy wherein the individual tax rate on dividends is greater than the tax rate on capital gains supports a low-dividend policy.
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Question

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A tax policy where dividends are taxed at a higher rate than capital gains incentivizes companies to retain earnings (leading to capital gains) rather than distribute them as dividends, supporting a low-dividend policy.

A Tax Policy Wherein the Individual Tax Rate on Dividends