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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 233.22+1.8%Nov 28 9:30 AM EST

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To: Lizzie Tudor who wrote (157494)5/29/2003 8:31:15 PM
From: Victor Lazlo  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. >>

So you'd be in favor of a 100% tax on dividends? Why tax the same money twice? Dividends are already after- tax dollars, even before they ever become dividends. If you want to tax the rich, just increase income taxes for the high brackets. Double taxation of corporate income is bad for the economy.

Besides rich people, such as Ross Perot, are big on muni bonds and gov bonds. A few years ago Ross Perots single biggest stash was in bonds issued by the metro Boston subway system.

Maybe we should make 'rich' people pay their health insuranc epremiums with after tax money. Wouldn't that raise even more money for our wise and prudent politicians to 'invest' in America?

<<There aren't many tax cuts like dividend tax cuts, its almost the most useless tax cut one can think of as far as the stimulative effect. >>

I think the didvidend tax itself is useless. I think you like the tax becuase you dont have to pay it!

<<Stocks that pay dividends are those that are favored by investors looking for safety and diversification. So that excludes the young working folks who we know prefer growth.>>

So young working folks dont want safety or diversification? Any balanced fund will have blue chip div-paying stocks in it. And balanced funds a re big with young people who dont have a lot of surplus to risk on agressive growth funds.

I disagree with your idea that div-paying stocks drain capital from growth companies. What is draining capital away from growth companies is the sad legacy of acctg fraud and outright bubble companies that the mkt is trying to get passed these days. Tons of money is still sitting in bonds and mon mkts due to lack of trust in equities.

And that fruad and bubble mania was due to frauds posing as growth co's, not div-paying co's.
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