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That money can be used to reinvest in the business or to fund dividends and buybacks, among other things.
Many large companies are quietly following the well-publicised example of Apple by issuing debt to fund dividends or buy-backs rather than repatriating cash held overseas that would trigger large tax payments.
The University of Phoenix charges inflated fees to fund dividends and executive bonuses.
But it's great for someone living off mutual fund dividends.
Overlook any income, say reinvested mutual fund dividends, and the Internal Revenue Service will demand its due.
"Although roughly 50 percent of Americans own stocks or mutual funds, dividends go overwhelmingly to the top 2 percent of the taxpayers.
The Clintons' other income last year included $24,932 in interest, $84,358 in mutual fund dividends and $226,297 in pension payments from the federal and Arkansas governments.
After seeing their portfolios' values melt away like snowmen in the sun, many investors still need to pay taxes on their funds' dividends.
· Incentives Saving in the form of pensions should be made more attractive, with more tax breaks for pensioners - scrapping the tax on pension funds' dividends, for instance.
A long period of low oil prices, with no uplift in sight, leaves Big Oil under the cosh as it tries to cut spending – while maintaining drilling rates so as to keep wells open and fund dividends.
Ms. Lasher-Adelman said the widow could expect to pay taxes on her funds' dividends, capital gains taxes on any stocks that the funds sold at a profit and at least a 28percentt capital gains tax on any portion of her funds that she held for less than a year before selling.
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CEO of Professional Science Editing for Scientists @ prosciediting.com