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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Lucretius who wrote (50932)12/23/2000 1:23:29 AM
From: clochard  Read Replies (2) of 436258
 
Hi guys...merry xmas etc...want to know how Bush can pull a rabbit out of his hat and:

1. save the markets

2. cut taxes

3. bring back rationality to the stock markets

?????

Answer: remove double-taxation on stock dividends by having only a flat rate witholding on dividend payouts before corporate tax. This would encourage companies to do what they were supposed to do all along: provide value to shareholders. Companies with more profits would be attractive because the investor could count on a real benefit. IBM would not have to borrow money to buy back its stock. Britain has this arrangement. (Not that they have a lot of sense but its a precedent)
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