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.

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

To: Art Bechhoefer who wrote (31047)	1/12/2003 2:48:11 PM
From: kech	Read Replies (3) \| Respond to of 196548

The Tax Plan . It is a complicated plan. No question. But that complication is oriented toward achieving some improvements in corporate governance and tax avoidance that might not happen with a either a zero corporate income tax or a zero corporate tax on dividends. They are trying to break the corporate veil and make corporations more beholden to shareholders. This is a good thing, and even a somewhat radical idea. So far must of the critics haven't picked up on this as much as they should IMHO. The Tax Plan and Qualcomm. I think it might even be a good thing for Qualcomm shareholders and is a way that high growth companies can compensate employees for corporate performance in lieu of options. Employees can get income through stock ownership (rather than options) that they either have to pay for or are given as part of their compensation (expensed at the time) but with some restrictions on sales. They won't have to jack up the stock price by inflating earnings to take some money out. Plus the dividend has to be pretty conservatively sustainable and also reduces short term behavior by managers and employees. Besides, it would also help Q with its critics of the the QSI division because Q would have to explain how these investments are better than the alternative, paying the dividend. In any case, these investments would be deductible from shareholders capital gains because they would be basis increasing. Most important of all, I could use a small dividend from this company <g>.