| ▲ | cscurmudgeon 11 hours ago | ||||||||||||||||
> A few percent of interest is a lot cheaper than 38% Not sure why that is comparable. | |||||||||||||||||
| ▲ | vidarh 9 hours ago | parent [-] | ||||||||||||||||
Let's say you have a tax debt of 1m, and your choice is to take out a 1m net dividend. Now you have to pay dividend tax. The other alternative is to borrow 1m, and pay interest on a 1m loan. Unless you hold the loan long enough for the aggregate interest accrued until you're able to sell some shares exceeds the dividend tax, it's a net saving. | |||||||||||||||||
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