SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 73.68-1.4%12:02 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: RetiredNow who wrote (62615)1/5/2003 3:12:43 PM
From: TigerPaw  Read Replies (1) of 77400
 
It's become a mantra that dividends are taxed twice or otherwise unfairly taxed. I think this has gained credibility through repetition and not a justified statement. If you buy from a store, you have to use money that was taxed, the store owner then pays tax on his profit, as does the supplier to the store. In general there is a cut taken in each step of the transaction. Dividends are no different and thereby no more unfair.

In the absense of dividends the only way to reap profit from an investment is through manipulation of the share price. Such manipulation strongly favors those with greater knowledge of the future plans and expectations of the investment. It is the insiders, the bankers, and the brokers who can most take advantage of the system, while a dividend rewards the investors only by their percentage of ownership, not by their connectedness. This is why the myth of dividend unfairness is reported by bankers, brokers, and the pundits who owe their living to them.

TP
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext