If the tax code were to be changed so that individual tax rates for dividends were taxed at a higher rate and long-term capital gains were taxed at a lower rate, shareholders would most likely encourage to limit investments into diversification that would significantly increase share value and, instead, increase dividend rates.

Question

Quizplus · Accepted Answer

If dividends are taxed at a higher rate and long-term capital gains at a lower rate, shareholders would prefer strategies that increase share value over dividends to benefit from the lower tax on capital gains.

If the Tax Code Were to Be Changed So That