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Technology Stocks : Intel Corporation (INTC)
INTC 36.20+0.1%Dec 26 9:30 AM EST

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To: Amy J who wrote (172400)1/9/2003 10:26:42 AM
From: The Duke of URL©  Read Replies (2) of 186894
 
Generally speaking, the elimination of the double taxation on dividends WILL TIE THE INDIVIUAL INVESTOR MUCH CLOSER TO THE COMPANY.

If one could generalize the "Enron Problem" which to a certain extent was in many companies, and which is in part caused by over-reliance on borrowing and which is a result of the disjunction of the shareholder and the corporation, would have been lessened.

A company's reliance on debt will be reduced vis a vis the equity market.

The reduction of double taxation of dividends would go very far toward rebuilding the equity markets, which give the small investor much more opportunity and will eventually result in encouraging creative new entities.

I have railed for 3 or 4 years now on this thread against those things which caused the market crash. I have studied this problem for years.

What I am surprised at is that the Bush elimination comes at the shareholder level, not at the corporate level where it should be.

I think Chuck Schwab suggested to Bush that it be at the corporate level, or at least he assumed that that is the way Bush understood it.

The only thing I can think of is that Bush felt that he could not possibly sell it as a corporate deduction, so he did the next best thing.
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