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To: TigerPaw who wrote (170631)	8/16/2002 10:51:18 AM
From: OLDTRADER	Read Replies (1) \| Respond to of 176387

RE:Tiger Paw:Yes -double-dividends are like ordinary income-the earned type-corporations pay also themselves so it's a double hit-"the most outrageous thing in the US is that you get penalized for putting your own after tax buckos at risk----in a capitalistic society you should be REWARDED for this risky act- tax-wise-especially when the managers of the companies you invest in get started in a 100 yard race -on the 95 yard line with free stock.GEE!Maybe someone has lobbied the pols with your own corporate $$$$ to get a one-up for themselves!

To: TigerPaw who wrote (170631)	8/16/2002 3:03:57 PM
From: Nikole Wollerstein	Respond to of 176387

""If dividends were allowed as a deduction would it be likely that more of these stocks would pay a dividend. "" Yes

To: TigerPaw who wrote (170631)	8/16/2002 8:01:50 PM
From: mepci	Read Replies (1) \| Respond to of 176387

TP: Great question. One has to realize that a corporation is separate entity (non-natural person) as opposed to you ( a natural person. If you make money on some transactions and if i lend you the money for making that money, the money I make on the transaction should be taxable. This is the philosophy behind counting dividends as income. the more fairer treatment is to reduce the buy-basis price on your stock by the amount of dividend just like what you can do when you write a covered call that expires (there are issues here too). This solution was not possible before, because it will be an accounting nightmare without proper computer support. is time that we abandon the archaic systems in accounting and capture transactions at source and model the posting from the journals in the correct way. Dividends should first be deducted from your principle first and added as income only after you exhaust the return of all principal investment. This seems to be too complicated for our pea-brain professionals in FASB, SEC, auditors, accountants and CFOs.