The corporate scandals are related to misstated earnings. If the company has to come up with the cash, it makes it more difficult to lie about earnings.
The earnings of many companies were wasted on stupid strategic mistakes-which created the bubble and collapse (though many of the piss-ant investors on SI want to believe it was ALL fraud, allowing them to feel victim status). The people of government can't wipe their asses-much less protect your investment. If the shareholders are empowered to pressure for dividends (i.e., if the Marxist/Leninist anti-American left is prevented from STEALING the money) there is a direct positive effect on corporate governance. People as stupid as YOU and DIPSHIT will still find a way to get ripped off, but us normal investors will see lower risks.
The cash companies don't NEED or can't USE gets routed back to investors, who can re-allocated to companies who CAN use it productively. Over an entire economy-that's the difference between wealth and poverty.
Finally, companies that NEED to raise cash through equity KNOW that they cannot dilute too much AND CAN'T OVER-BORROW, like the recent bankrupts ALL did.
So, besides eliminating a form of absolute FRAUD that would make JOE STALIN blush, the elimination of double taxation AT THE INVESTOR LEVEL also cleans up all the stuff pin heads like Daschle and Loserman tried so hard to blame on Bush (which is why they are against it).
Greenspan's right that the corp.s shouldn't pay taxes on money distributed as dividends. But what that really means is that the corporate income tax is a hidden fraud against the American taxpayer-causing corruption in politics as companies try to defend themselves from the coercive power of the liberal state-and should be COMPLETELY abolished forever.
BUT: It really ALL comes down to defeating, ostracizing, and PURGING the Marxist/Leninist anti-American enemy, who is the source of EVERY national problem, INCLUDING ignorant, class-warfare tax policy. So this issue is like every other: You are either pro or anti-American. Bush's plan is pro-American. We will SEE, once again, who the slimy TRAITIORS are... |
