Personal tax view

Personal tax view (of capital structure)

The argument that the difference in personal tax rates between income from debt and income from equity eliminates the disadvantage of the double taxation (corporate and personal) of income from equity.

Personal Tax View of Capital Structure

A theory stating that, all other things being equal, double taxation does not reduce a person's income from investments. This is because there is a difference in the tax rate between corporate tax and income tax (or capital gains tax). So long as one tax rate is lower than the other, the effects of double taxation are mitigated or eliminated.