Assume that the corporate tax rate is 34% and the personal tax rate is 30%.The founders of a newly formed business are debating between setting up the firm as a partnership versus a corporation.The firm will not need to retain any earnings,so all of its after-tax income will be paid out to its investors,who will have to pay personal taxes on whatever they receive.What is the difference in the percentage of the firm's pre-tax income that investors actually receive and can spend under the corporate and partnership forms of organization ?

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11ea856c_8c0b_3c4f_9aec_d91e0a0b080e_TB1222_00 Corporation: 11ea856c_8c0b_6360_9aec_89f8743c104c_TB1222_00 Partnership:
The business pays no tax,but investors pay tax on business income. 11ea856c_8c0b_6361_9aec_9df1c3861e6f_TB1222_00 ? 11ea856c_8c0b_6362_9aec_cd70f5624636_TB1222_00

Assume That the Corporate Tax Rate Is 34% and the Personal