The 15% is actually not as cheap as it looks, because it is double-taxed as it is taken out of retained earnings (which is taxed at the corporate level), whereas salaries are an expenditure, thus the money is not taxed at the corporate level. To the individual, 1 MM in dividends is better than 1 MM in salary, but paying dividends or salary are almost the same to the company and the government. This is why sole proprietorship corporations often pay their owners a salary instead of only dividends (or buybacks).