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A theory stating that investment firm passing all capital gains, interest,
and dividends onto their customers/shareholders shouldn't be levied
at the corporate level like most regular companies are.
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Basically
they pass income (without taxing themselves) directly to the investors
who are then taxed as individuals. This theory means investors are
taxed once on the same income, where as in regular companies investors
are taxed twice. Both when the company reports income and when dividends
are received. An example is a REIT or mutual fund company.
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Dictionary
