From the Zeev man///
"...and for that matter our full administration, think they are very short sighted, they are not considering the
long term ramifications of what they are doing, not just on the international political scene, but even on the
domestic taxation scene.
That dividend exclusion in taxation is a catastrophe, long term. It will have long term negative impact on
other tax free instruments (tax free to payees), will not create an incentive to have a better equity vs debt
financial structure in corporate America) since interest on debt will still be deductible to corporations, but
dividend paid will not).
That new dividend exclusion policy is a travesty as far as the retired and retiring population is concerned,
since it shifts the tax burden on them. These people have their dividends paid into various IRA and 401-k
accounts, and guess what, when these people take out their money from such accounts, including
dividends paid, they will be the one paying taxes on those dividends. I have seen somewhere that almost
50% of all dividends paid by corporate America is into such accounts. I a sure that the current Republican
crop of policy makers are simply stupid not seeing what are the long term repercussions of that taxation
change. Why stupid rather than heartless, since I cannot believe they really think that the burden of
taxation should be shifted to the retired and retiring population. They simply do not see it, thus they are
stupid.
CC |
