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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Bill who wrote (443599)	8/15/2003 4:07:48 PM
From: Srexley	Read Replies (2) \| Respond to of 769670

Taxing dividends is double taxation, but not in the way that I used it. The individual who gets the dividend is only taxed once on the dividend (the 1st time the corporation is taxed), but my point was the person getting dividend income paid taxes on the money invested that resulted in dividends. The two posters I am agruing with like to lump dividends with our Fed tax rates to make mathematical examples that show our taxes are really going up even though the tax rates have gone down. They are false arguments in my opinion.

To: Bill who wrote (443599)	8/15/2003 4:23:55 PM
From: wonk	Read Replies (1) \| Respond to of 769670

Of course, corporate dividends have been double taxed. But as I said, fix it by letting corporations deduct it as an expense, the same as interest on debt. That way the tax code will not favor debt-heavy over debt-light corporations. Now we have the worst of both worlds: The tax code does favor corporate debt over equity and The tax code more heavily favors one citizen over another.

To: Bill who wrote (443599)	8/15/2003 4:42:00 PM
From: TigerPaw	Read Replies (1) \| Respond to of 769670

Money transfers are taxed in the U.S., not money per/se. When you give money to the grocer, he has to pay tax on his profit. When the grocer gives money to the wholesaler he also pays tax on his profits. Every time the money changes hands there is tax to be paid on the profits. Corporations are treated just like they are real people and so they follow the same rule, pay tax on profit when transfering. The issue is not whether the tax paid on a dividend transfer has also been paid during another transfer, but why dividends should be treated differently by skipping the tax. TP