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Non-Tech : Raptor's Den
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To: heehee1 who wrote (6896)1/8/2003 11:17:30 AM
From: Bob  Read Replies (1) of 10157
 
heehee1:

This multiple taxation of dividends discourages investors from finding equity investments that pay a steady stream of income and encourages corporations to retain profits and seek debt financing solely for tax purposes rather than financing their operations with equity.[1] Indeed, these effects may well mean that the tax treatment of dividends is contributing to some of the economy’s worst problems, under­scoring the hope that Congress will make the tax treatment of dividends more economically neutral.

No, I don't have any idea how many, but based on the paragraph above from the article, this is probably why.

I did hear somewhere yesterday that, throughout history, anything tried to "stimulate" an economy was unnecessary, because the economy after going through it's normal business cycle, is generally already on the road to recovery when these type programs are introduced.

I would rather believe that the exemption on dividends is being done for the simple reason the govt. has no business taxing them twice.

Regards,

BobP
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