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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 236.07

+0.9%

12:27 PM EST

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To: Lizzie Tudor who wrote (157494)	5/29/2003 7:47:57 PM
From: Oeconomicus	Read Replies (1) of 164684

the problem with dividend tax cuts, is there isn't any reason for doing them except to help the rich. How 'bout the simple truth that applying income tax to the same dollar twice, at best, makes no economic sense. It creates economic incentives for companies to favor debt over equity and open market repurchases or hoarding of cash over distribution of surplus cash back to shareholders to spend or reinvest in other businesses in need of capital. Even many growth companies generate huge surpluses of cash they can't possibly reinvest in their businesses. Think, MSFT, DELL, CSCO and many more. Any reallocation of investment dollars from non-dividend paying to dividend paying companies will be a short term, temporary effect until valuations adjust to the risk and cash-flow characteristics of the investments. It seems you are too caught up in the democratic class warfare rhetoric and uniquely silly valley view of economics to see the truth.

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