sameeragarwal

JP_RL_CFA Wrote:
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> So if your tax bracket is higher than the corp tax
> bracket, u effectively pay your tax bracket,
> correct? Because you're getting a tax credit for
> the difference.
>
> If your tax bracket is lower than the corp tax
> bracket, then you have to pay a tax payment for
> the difference.
>
> Is that right?


Are you referring to the imputation method? Stalla actually says the opposite. Individuals with lower taxes actually benefit from more dividends under imputation, while the opposite holds true for individuals in higher tax brackets (see pgs. 93-94). It won't affect the effective tax rate calculation since it is calculated before the corporate tax credit.

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