One argument advanced in favor of raising the tax on dividends is that
A) dividends increase the wealth of shareholder's which could lead to inflation.
B) the tax revenue gained will be used to help pay for the federal stimulus package.
C) dividends accrue mostly to low income individuals, thus increasing income inequality.
D) it increases the incentive for corporations to maximize shareholder value.

Question

Quizplus · Accepted Answer

Raising the tax on dividends can generate additional tax revenue, which can be used to fund government initiatives such as a federal stimulus package.

One Argument Advanced in Favor of Raising the Tax on Dividends