Isn’t governments the invisible shareholder of all corporations?
Say tax is 25% , essentially gov will take 25 of 100 profit before tax, and the rest $75 are called profit after tax and is distributed to shareholders.
Does it sound odd?
Isn’t governments essentially a permanent 25% shareholder of the company, and the ratio is net by itself.
How convenient.
Btw, shareholders are should give their shares a 25% hair cut.. if they own 50% of a company, they just own 37.5% in case of 25% tax.