- Congress is currently debating and negotiating a bill that would raise corporate tax rates from 21% to 26.5% (or 25% if certain moderate senators have their way).
- This would hurt most companies by incrementally raising their effective tax rates.
- However, there are classes of stocks that do not have to pay any corporate tax rates. Instead, shareholders pay taxes at their personal income tax rates on dividends.
- I highlight three of these pass-through stocks: a BDC, a REIT, and an MLP.
For further details see:
Rising Corporate Tax Rates? These 3 High-Yield Stocks Are Unaffected