Mr Smith

Dividend taxation seems to me a bit like a situation in which a child would have to pay income tax on the allowance it receives from its parents, who already paid tax on their income. I mean, companies pay out dividends after they pay taxes on their net income, isn’t that true? Dividend taxation is double taxation.

Here in Croatia, persons (not companies) don’t have to pay any sort of tax on capital gains. I think that’s OK, not because I pay less taxes but because I somehow think that if paid more tax, that money would go to generally stupid purposes anyway (such as bigger salaries for the huge number of government employees ). You should also ask yourselves where that money goes – Bush’s war in Iraq, perhaps?