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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (62622)	1/5/2003 3:52:01 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 77400

If you buy from a store, you have to use money that was taxed, the store owner then pays tax on his profit, as does the supplier to the store. the problem with this analogy is that the shareholders are already owners of the co, so they (the same entities) are taxed twice--at the individual and at the corporate level. in contrast, your example shows taxation of separate entities. however, there are other reasons that the dividend tax repeal "movement" is a red herring. among them: more than half of all dividend-paying stocks are held in tax-sheltered accounts! also, dividend yield is very low so it's not like there's a lot of income to be taxed. cos cannot really raise the payout ratio because they are too busy using retained earnings to buy back stock in order to finance the nine-figure pay packages of their scumbag CEOs.