{'fraction_non_alphanumeric': 0.01338199513381995, 'fraction_numerical': 0.0, 'mean_word_length': 5.3307692307692305, 'pattern_counts': {'":': 0, '<': 0, '<?xml version=': 0, '>': 0, 'https://': 0, 'lorem ipsum': 0, 'www.': 0, 'xml': 0}, 'pii_count': 0, 'substrings_counts': 0, 'word_list_counts': {'cursed_substrings.json': 0, 'profanity_word_list.json': 0, 'sexual_word_list.json': 0, 'zh_pornsignals.json': 0}}
The Economic Effects of Dividend Taxation

In this paper we investigate the theoretical rationale for and implications of dividend taxation in a Canadian context. We focus in particular on the implications of dividend taxation for real investment. Three views of dividend taxation are described, each of which has different implications for investment and firm financial policy. Some of the literature which investigates the empirical relevance of these three views is reviewed. We tentatively conclude that there is some support for the “traditional” view that dividend taxes dampen investment. Accepting this as the relevant view, we perform some rough calculations of the impact of eliminating integration in Canada on the cost of capital, and speculate upon the possible investment effects of this hypothetical policy.