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Non-Tech : Tyco International Limited (TYC) -- Ignore unavailable to you. Want to Upgrade?

To: Edwarda who wrote (786)	12/3/1999 1:46:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 3770

Harrumph! I have never jumped on you! Tax implications for sure! Dividends are taxed as ordinary income (up to 39.6%), but stock repurchase behaves like a tax deferred DRIP, and of course when you sell your effective tax rate can drop to 20% if you are a long-term hold. I'm frankly surprised that the US government hasn't moved in to stop this practice. But I guess they're raking in so much money on capital gains taxation that they're taking the view that "if it ain't broke, don't fix it".