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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Mark Fleming who wrote (30917)	1/9/2003 9:29:27 AM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 196527

Mark, your suggestion ignores a third alternative--that a corporation like QUALCOMM might prefer NOT to pay dividends out of retained earnings but instead might want to buy some of its own shares on the market. The main factor in determining which policy is best must depend on the growth inherent in the business at the present time, coupled with management's perception of what is best for shareholders. Creating all sorts of new deductions and exemptions from tax is a sort of band-aid approach that fails to recognize the main objective of any tax system is to raise revenue. The more special treatments are created, the less revenue is raised and the higher the resulting tax rates. The better approach here is to tax BOTH dividends and capital gains as ordinary income, with capital gains indexed for inflation. The present proposal is inefficient and inequitable. Art