split rate tax system

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source: https://www. sid. ir/FileServer/SF/8551393H0829. pdf
A tax system that taxes retained earnings ( profits a company keeps ) at a higher rate than the profits it pays out as dividends. This can encourage companies to have a lower plowback ratio and, instead, pay higher dividends
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source: https://financial - dictionary. thefreedictionary. com/Split - rate tax system#:~:text=distributed as dividends. - , Split - Rate Tax System, , instead, pay higher dividends.

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