Another "Market Failure" Caused by Government

Comment:

I think the market for ownership of companies is incredibly corrupt in this country and many like it with similar tax and regulatory structures. The double taxation of dividends and the taxation of corporate income breed an environment where the most tax efficient way to maximize shareholder value is to retain earnings in the company to avoid dividend tax, and to spend these retained earnings on "growth" opportunities, usually acquisitions or risky skunk works ventures, to try to grow market value.