The Jobs and Growth Tax Relief Reconciliation Act of 2003 significantly reduced the effective personal tax rates on dividend income for most U S investors What effect do you think this act has had on corporate incentive to use debt ...

By reducing the effective personal tax rate on equit ...

The Jobs and Growth Tax Relief Reconciliation Act of 2003 significantly reduced the effective personal tax rates

Question:

The Jobs and Growth Tax Relief Reconciliation Act of 2003 significantly reduced the effective personal tax rates on income for most U. S. investors. What effect do you think this act has had on corporate incentive to use debt?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...