Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Bob Rudd who wrote (16107)	1/8/2003 4:23:45 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 78717

Tax plan contains a hidden Cap Gains tax cut according to report on CNBC. The provision makes it neutral to retain earnings or pay them out in dividends by reducing cap gains by amount company retains during holding period. I'm sure it will be in the news soon. Time to look hard at HRB...this would be amazingly complex to implement and report.

To: Bob Rudd who wrote (16107)	1/8/2003 5:00:04 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78717

Hey! Are you trying to tweak us ACAS/ALD stockholders? :>) Greenberg's been writing negative stuff on these business development companies for months. He never misses a chance to expound the negative. It is too early to predict the demise of these high dividend payers just because they might not be providing tax free dividends under the proposed laws. For example, it won't make any difference (I am guessing) to anybody holding ACAS or ALD now in a 401K plan. Because anything coming out of the 401 gets taxed at the person's tax rate at the coming-out time regardless if monies went in tax-free or taxable. So that 11% yield in ACAS is still juicy. And there's the issue of deductibility of margin interest. Now you can offset margin interest with dividend income. If div. income becomes tax-free to the taxpayer I doubt that the gov't will let such offsets continue. So I'm saying it might be a positive to have stocks like ACAS, ALD in margin accounts. But who can tell yet?

To: Bob Rudd who wrote (16107)	1/8/2003 5:29:10 PM
From: Dale Baker	Read Replies (1) \| Respond to of 78717

All the classics of doublespeak: "MIGHT NOT BE INCLUDED IN THE PLAN?.....DOESN'T EXPECT THE TAX SITUATION WITH BDC DIVIDENDS TO BE CHANGED....IT IS OUR VIEW THAT THE AIM OF DIVIDEND TAX RELIEF .... In fact, IF THE DIVIDENDS OF COMPANIES LIKE ALLIED ARE EXCLUDED FROM TAX RELIEF, IT COULD PROVE TO BE A NEGATIVE..." Once you toss out the filler and distill the passage down to the qualified conditional phrases, it doesn't pass for warm crapola to a horsefly on a sunny day. In other words, the author hides behind rhetorical BS to play on somebody's fear factor. Doesn't wash in my book. I spent years in the government PR machine cranking out this nonsense, it looks very familiar.