Dual Taxation

Our Research & Offerings on Dual Taxation

WebMemo posted May 8, 2006 by Daniel Mitchell, Ph.D. Economy Will Benefit If Lawmakers Extend 15 Percent Tax Rate on Dividends and Capital Gains
House and Senate negotiators are hammering out details of a tax bill that would extend the 15 percent tax rate on dividends and capital gains for two years. Failure to reach an agreement would result in a major tax increase beginning January 1, 2009, when the capital gains tax rate would climb to 20…
WebMemo posted June 7, 2005 by Daniel Mitchell, Ph.D. A "Supply-Side" Success Story
Why is the 2003 tax cut working so much better than the 2001 tax cut? Why is the economy performing better, for instance, and why are tax revenues growing faster than projected today compared to what happened after the 2001 tax legislation? The answer is that not all tax cuts are created equal. Tax…
WebMemo posted October 25, 2004 by Norbert Michel, Ph.D., Ralph Rector, Ph.D. Dividend Policy and the 2003 Tax Cut: Preliminary Evidence
Two recent National Bureau of Economic Research (NBER) papers begin the formal study of whether the 2003 dividend tax cuts affected corporate dividend policy. Economists have debated for years whether lowering individuals' taxes on dividends would lead to increased corporate payouts, and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) provides a…
WebMemo posted March 31, 2004 by Daniel Mitchell, Ph.D. Medicare: A Ticking Time Bomb for Tax Increases
Last year's legislation adding a prescription drug benefit to Medicare is the biggest unfunded entitlement expansion in nearly 40 years. Unfortunately for taxpaying Americans, the projected 10-year cost-estimated at $400 billion last year but now already well above $500 billion-is just a drop in the bucket compared to…
WebMemo posted March 18, 2004 by Rea Hederman, Jr., Alfredo Goyburu An Increase in the Gas Tax Would Hurt Consumers and Slow the Economy
Some leaders in Congress want to increase the federal tax on gasoline by 5.45 cents per gallon, for the first year, and then index it to inflation. They would use the revenue from this tax increase to finance additional spending on highways and other transportation projects, which they say will benefit the economy. Macroeconomic…
WebMemo posted March 1, 2004 by Dan Mitchell Corporate Rate Reduction and International Tax Reform: Best Options for FSC/ETI Replacement Legislation
The World Trade Organization (WTO) repeatedly has ruled that provisions of U.S. tax law provide an impermissible "export subsidy." The WTO also has ruled that, beginning March 1, the European Union (EU) can impose more than $4 billion of taxes on U.S. exports unless and until these provisions, known as Foreign Sales Corporation and Extraterritorial Income…
WebMemo posted November 6, 2003 by Dan Mitchell Ways & Means Tax Bill a Step in the Right Direction
The Committee on Ways and Means recently approved a bill that repeals the preferential tax rate for export-related corporate income: the Extraterritorial Income Act (ETI), formerly Foreign Sales Corporation (FSC). This legislation is a step in the right direction towards making the U.S. tax code more competitive among our major trading partners. …
WebMemo posted May 6, 2003 by Alfredo Goyburu, Rea Hederman, Jr., Norbert Michel, Ph.D. Lowering Dividends and Capital Gains to 15 Percent Creates Significant Economic Growth
On April 30, Congressman Bill Thomas, Chair of the House Ways and Means Committee, proposed reducing the personal income tax rate on long-term capital gains and dividends to 5 percent for filers in the 10 and 15 percent individual income tax bracket and 15 percent for filers in the higher tax brackets. …
WebMemo posted April 3, 2003 by Norbert Michel, Ph.D. Everyone Profits from Hurdling Dividends
Why would ending the double tax on dividends encourage economic growth and thereby benefit most Americans? To understand why, it is helpful to imagine being a corporate manager. Before investing in buildings, equipment and machinery, managers estimate their expected profits using a concept known as the "hurdle rate." How exactly does this work? To estimate a…
Backgrounder posted March 28, 2003 by Daniel Mitchell, Ph.D., Norbert Michel, Ph.D., David John Pathway to Economic Growth and Tax Reform: Eliminating the Double Tax on Dividends
In a bold move, President George W. Bush has proposed that the double taxation of dividends be eliminated. Under his plan, businesses would still pay tax on corporate income, but individual stockholders would no longer pay a second tax on that income when it is distributed as dividends. The President is…

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Backgrounder posted March 28, 2003 by Daniel Mitchell, Ph.D., Norbert Michel, Ph.D., David John Pathway to Economic Growth and Tax Reform: Eliminating the Double Tax on Dividends
In a bold move, President George W. Bush has proposed that the double taxation of dividends be eliminated. Under his plan, businesses would still pay tax on corporate income, but individual stockholders would no longer pay a second tax on that income when it is distributed as dividends. The President is…
WebMemo posted May 8, 2006 by Daniel Mitchell, Ph.D. Economy Will Benefit If Lawmakers Extend 15 Percent Tax Rate on Dividends and Capital Gains
House and Senate negotiators are hammering out details of a tax bill that would extend the 15 percent tax rate on dividends and capital gains for two years. Failure to reach an agreement would result in a major tax increase beginning January 1, 2009, when the capital gains tax rate would climb to 20…
WebMemo posted October 11, 2001 by The Heritage Foundation Capital Gains Tax Cuts: Myths and Facts
Myth 1: Lowering capital gains tax rates will not help the economy. Fact 1: Cutting capital gains tax rates is the single best tax policy to improve economic growth. Capital gains play a unique role in fostering economic activity, especially by entrepreneurs in high-technology areas. The current top statutory rate of 20 percent significantly exceeds the…
WebMemo posted October 25, 2004 by Norbert Michel, Ph.D., Ralph Rector, Ph.D. Dividend Policy and the 2003 Tax Cut: Preliminary Evidence
Two recent National Bureau of Economic Research (NBER) papers begin the formal study of whether the 2003 dividend tax cuts affected corporate dividend policy. Economists have debated for years whether lowering individuals' taxes on dividends would lead to increased corporate payouts, and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) provides a…
Center for Data Analysis Report posted February 3, 2003 by Norbert Michel, Ph.D., Alfredo Goyburu, Ralph Rector, Ph.D. CDA Working Paper: The Economic and Fiscal Effects of Ending the Federal Double Taxation of Dividends
On January 7, 2003, President George W. Bush unveiled a multi-faceted proposal to improve the nation's economic growth. One of the most important features of his plan calls for abolition of the current federal double taxation of corporate dividends paid to individual shareholders. Economic analysts at the Center for Data Analysis (CDA) at The Heritage…
Center for Data Analysis Report posted January 7, 2003 by Norbert Michel, Ph.D. Who Really Benefits from Dividend Tax Relief?
With major tax reform once again heading the list of legislative priorities, many analysts are hoping that the 108th Congress will make tax law far less a factor in economic decisions than it is today. Making the tax code more economically neutral is particularly desirable when it…
WebMemo posted March 18, 2004 by Rea Hederman, Jr., Alfredo Goyburu An Increase in the Gas Tax Would Hurt Consumers and Slow the Economy
Some leaders in Congress want to increase the federal tax on gasoline by 5.45 cents per gallon, for the first year, and then index it to inflation. They would use the revenue from this tax increase to finance additional spending on highways and other transportation projects, which they say will benefit the economy. Macroeconomic…
WebMemo posted December 4, 2001 by Kirk Johnson, Ph.D. The Domenici Payroll Tax Holiday: Bad Policy for America
Last month, Sen. Pete Domenici (R-NM) proposed that the payroll taxes devoted to social security be suspended for the month of December in order to strengthen the nation's sagging economy. Both employers and employees each pay 6.2 percent of earnings to fund the program, up to the current 2001 wage cap of $80,400. The Domenici…
Backgrounder posted March 5, 2003 by Daniel Mitchell, Ph.D. Protecting Seniors from Double Taxation
President George W. Bush has proposed that the double taxation of dividends be eliminated. Under his plan, businesses would continue to pay tax on corporate income, but individual stockholders no longer would have to pay a second layer of tax on that income when it is distributed in the form of dividends.…
WebMemo posted January 8, 2003 by Andrew Olivastro Fiscal Effects of Dividend Tax Relief
Ending double dividend tax means $384 more yearly income for family of four 325,000 new jobs created $32 billion in new economic growth seen in Heritage "dynamic scoring" of dividend tax reform proposal President Bush's economic growth package includes a proposal to eliminate double taxation of stock dividends. Abolishing this unfair double standard in taxation can…

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WebMemo posted May 8, 2006 by Daniel Mitchell, Ph.D. Economy Will Benefit If Lawmakers Extend 15 Percent Tax Rate on Dividends and Capital Gains
House and Senate negotiators are hammering out details of a tax bill that would extend the 15 percent tax rate on dividends and capital gains for two years. Failure to reach an agreement would result in a major tax increase beginning January 1, 2009, when the capital gains tax rate would climb to 20…
WebMemo posted June 7, 2005 by Daniel Mitchell, Ph.D. A "Supply-Side" Success Story
Why is the 2003 tax cut working so much better than the 2001 tax cut? Why is the economy performing better, for instance, and why are tax revenues growing faster than projected today compared to what happened after the 2001 tax legislation? The answer is that not all tax cuts are created equal. Tax…
WebMemo posted October 25, 2004 by Norbert Michel, Ph.D., Ralph Rector, Ph.D. Dividend Policy and the 2003 Tax Cut: Preliminary Evidence
Two recent National Bureau of Economic Research (NBER) papers begin the formal study of whether the 2003 dividend tax cuts affected corporate dividend policy. Economists have debated for years whether lowering individuals' taxes on dividends would lead to increased corporate payouts, and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) provides a…
WebMemo posted March 31, 2004 by Daniel Mitchell, Ph.D. Medicare: A Ticking Time Bomb for Tax Increases
Last year's legislation adding a prescription drug benefit to Medicare is the biggest unfunded entitlement expansion in nearly 40 years. Unfortunately for taxpaying Americans, the projected 10-year cost-estimated at $400 billion last year but now already well above $500 billion-is just a drop in the bucket compared to…
WebMemo posted March 18, 2004 by Rea Hederman, Jr., Alfredo Goyburu An Increase in the Gas Tax Would Hurt Consumers and Slow the Economy
Some leaders in Congress want to increase the federal tax on gasoline by 5.45 cents per gallon, for the first year, and then index it to inflation. They would use the revenue from this tax increase to finance additional spending on highways and other transportation projects, which they say will benefit the economy. Macroeconomic…
WebMemo posted March 1, 2004 by Dan Mitchell Corporate Rate Reduction and International Tax Reform: Best Options for FSC/ETI Replacement Legislation
The World Trade Organization (WTO) repeatedly has ruled that provisions of U.S. tax law provide an impermissible "export subsidy." The WTO also has ruled that, beginning March 1, the European Union (EU) can impose more than $4 billion of taxes on U.S. exports unless and until these provisions, known as Foreign Sales Corporation and Extraterritorial Income…
WebMemo posted November 6, 2003 by Dan Mitchell Ways & Means Tax Bill a Step in the Right Direction
The Committee on Ways and Means recently approved a bill that repeals the preferential tax rate for export-related corporate income: the Extraterritorial Income Act (ETI), formerly Foreign Sales Corporation (FSC). This legislation is a step in the right direction towards making the U.S. tax code more competitive among our major trading partners. …
WebMemo posted May 6, 2003 by Alfredo Goyburu, Rea Hederman, Jr., Norbert Michel, Ph.D. Lowering Dividends and Capital Gains to 15 Percent Creates Significant Economic Growth
On April 30, Congressman Bill Thomas, Chair of the House Ways and Means Committee, proposed reducing the personal income tax rate on long-term capital gains and dividends to 5 percent for filers in the 10 and 15 percent individual income tax bracket and 15 percent for filers in the higher tax brackets. …
WebMemo posted April 3, 2003 by Norbert Michel, Ph.D. Everyone Profits from Hurdling Dividends
Why would ending the double tax on dividends encourage economic growth and thereby benefit most Americans? To understand why, it is helpful to imagine being a corporate manager. Before investing in buildings, equipment and machinery, managers estimate their expected profits using a concept known as the "hurdle rate." How exactly does this work? To estimate a…
Backgrounder posted March 28, 2003 by Daniel Mitchell, Ph.D., Norbert Michel, Ph.D., David John Pathway to Economic Growth and Tax Reform: Eliminating the Double Tax on Dividends
In a bold move, President George W. Bush has proposed that the double taxation of dividends be eliminated. Under his plan, businesses would still pay tax on corporate income, but individual stockholders would no longer pay a second tax on that income when it is distributed as dividends. The President is…

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