### Comment:
Isn’t it interesting too how interest payments (debt) are tax deductible? Aka more debt = more interest expense = less pre tax income and lower taxes.  
  
 Dividends however are not considered an expense and therefore don’t have any tax shield. Small wonder some firms lever up their balance sheets as well to avoid tax. Then people get angry when they do stock buybacks. 


### REPLY:
But dividends can be paid by raising debt. So there can be a tax shield.

### END.