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Corporate profits are fully taxed.

Retained earnings are simply after-tax profits that are kept within the company for future investment, etc. as opposed to being distributed to shareholders.

2007-03-13 17:34:54 · answer #1 · answered by Bostonian In MO 7 · 0 1

i think your getting some terminology or concepts confused here. First off retained earnings is what the company keeps in the business after dividends and taxes have been paid. So retained earnings have or should have been taxed already.

2007-03-13 22:39:04 · answer #2 · answered by Ski_Bum 3 · 0 1

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