The Dividend Reinvestment Deduction: A Modest Proposal to Reform the Taxation of Business Income

14 Pages Posted: 25 Feb 2014 Last revised: 26 Mar 2014

See all articles by David Hasen

David Hasen

University of Florida Levin College of Law

Date Written: March 2014

Abstract

This essay, scheduled to appear in the 2014 symposium issue of the Chapman Law Review, proposes enactment of a deduction to individuals for distributions received on stock in regular, or "C," corporations when the distributions are reinvested prior to the return date for the year of distribution. The proposal extends as well to gains recognized on the sale or exchange of stock in C corporations. Mechanics of the deduction and likely efficiency gains and other behavioral effects are discussed.

Keywords: taxation, efficiency, public finance, corporate taxation

JEL Classification: E62, H2, H24, H25, K34

Suggested Citation

Hasen, David, The Dividend Reinvestment Deduction: A Modest Proposal to Reform the Taxation of Business Income (March 2014). Available at SSRN: https://ssrn.com/abstract=2400628 or http://dx.doi.org/10.2139/ssrn.2400628

David Hasen (Contact Author)

University of Florida Levin College of Law ( email )

P.O. Box 117625
Gainesville, FL 32611-7625
United States

HOME PAGE: http://https://www.law.ufl.edu/faculty/david-hasen

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