David Lawrence:
Message 18966504
"But I was luckier in that I came wired at birth with a talent for capital allocation..."
Well, his wires are crossed. Dividends are either a return of paid-in-capital or retained earnings on which taxes have already been paid. It's double taxation to tax them again at the individual level. It's not a case of rich or poor, nor is it a case of economic stimulus. It's a case of correcting an inequity in the tax law. Period.
Perhaps he has an ulterior motive? Is he or any of his companies a major holder of tax-free municipal bonds? Tax free munis have been unfairly subsidised by the unfair taxes placed on corporate dividends for decades. Now, they will have to compete on a more level field for the same investment dollars. Municipal bond issuers will have to pay higher rates to compete for those dollars. And, of course, they'll have to raise EVERYONE's taxes or cut spending in order to service a higher debt cost. And, currently outstanding bonds will decrease in value. THAT is the real impact of exempting dividends from tax, but "Mr. Wired For Capital Allocation" didn't even think it worthy of mention? Perhaps that would reveal his true motivations for opposing the tax cut?
Of course, this could all be avoided by making dividends a tax-deductible expense at the corporate level, and continuing to take them at the individual level. But it wouldn't be politically correct to give a perceived tax break to "greedy" corporate America, so instead we'll shoot the tax-free bond market in both feet.
He's a smart man... smarter than those who take his words at face value.
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Your condescending tone is NOT appreciated here. <font color=red>TAKE IT ESLEWHERE.</font>
Your above post has been forwarded to Mr. Warren Buffett, Berkshire Hathaway, 1440 Kiewit Plaza, Omaha, NE 68131. |
