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To: Victor Lazlo who wrote (157509)	5/29/2003 9:24:59 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 164684

Since the cap gain tax is lower than the div tax, one could argue that double taxation of divs unfairly singles out div-paying co's for extra taxes, thus providing artificial attractiveness for growth co stocks over mature div-paying ones. Why should the govt favor one type of co over another? The govt shouldn't favor one type over another but the problem is the game is already rigged with a lot of tax advantaged investments like 401Ks where dividends are tax free. Those instruments effectively favor the dividend payers because the benefits of growth (tax free appreciation) are effectively nullified. Cash is just easier and better than the same $$ paid in stock, or in stock appreciation, all things being equal. Thats why so many investment advisors (including mine) recommend only dividend paying and fixed income investments in my IRA/401K.