During the interim period, before taxes have been eliminated, a corporation shall be permitted to pay a portion of its taxes in the form of common stock.  The amount of tax credit it might receive shall be based upon the expected dividend earnings for the next three (?) years, so if a corporation does not pay a dividend, it can not receive a credit, but for companies with increasingly high dividends they may receive increasing amounts of credit per share.  (The exact formula for relating this credit to a specific tax obligation is yet to be determined.)

This would, in effect, be a reduction in the corporate tax rate for many corporations and this in turn will make them more competitive at home and globally.[i]  It would also be an incentive for corporations to increase the amount of their dividends or to pay one if they are not.  On the other hand, it would dilute the value of the corporate stocks so that it could be considered to be a tax on the shareholders; however, the increased competitiveness it would create and the increases in dividend rates should more than offset this potential problem.