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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (170634)	8/16/2002 11:18:33 AM
From: BWAC	Read Replies (1) \| Respond to of 176387

Dividends are taxed first when they are earnings of the corporation. In theory you have to have corporate income/earnings to pay a dividend. Corporate Income is taxed. THEN the dividend (from taxed corporate income) is paid to the shareholder. The Shareholder then again pays income tax on this money. Double Taxation. Once at the Corporate Level. Again at the Shareholder level. What started out as $1.42 in earnings. Taxed at 30% would be after tax earnings of $1. IF that $1 was paid out in dividends the shareholder would be taxed again. Assume 30%. Now the shareholder has a net of 70 cents. Government got 72 cents of the Corporate Earnings. Investor got just 70 cents.

To: TigerPaw who wrote (170634)	8/16/2002 8:24:17 PM
From: mepci	Respond to of 176387

TP: There are three stacks of money here. First stock is earnings before corporate taxes. After IRS is paid their due, this becomes retained earnings and is added to the stack called stockholders equity. stockholders equity is not taxable. When you use this to buy back stock, you are saying that the money is better spent in reducing the number of shares. I am totally opposed to this because this is saying that management doesn't know how to use this money to increase the retained earnings by using the cash you wasted in buying your stock. Truely speaking SE is the real investment ($wise) in the company. Dividend should be looked similar to interest payment and hence is taxable. I prefer that dividend is first treated as return on principle (price you paid to acquire the stock). I believe dividends are very important unless the management shows me better increase in SE for keeping that cash in the company. Unfortunately, management became thieves with keys where they are raiding the SE without proper understanding of stockholders and without their permission. What is worse is that Dell and others gambled with SE and got you stuck with these losses. we all enjoy the profits from dell stock, because there is a bigger fool who is willing to pay me $28, when i ready to sell. The worst thing about this scam is that it is recognized as all legal.