> This would change if the government stopped taxing retained earnings. No it wo... | Hacker News

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		ta1243 55 days ago \| parent \| context \| favorite \| on: Wikipedia says traffic is falling due to AI search... > This would change if the government stopped taxing retained earnings. No it wouldn't, because > the money is still at risk (from a shareholder’s point of view) if something bad happens to the company (lawsuit or market problem).

warkdarrior 55 days ago [–]

It would definitely change, because a shareholder could then take a loan against the non-taxed retained earnings they are owed. So then it comes down to whether the tax is higher or lower than the loan interest (adjust for the risk you mentioned).

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