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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (370904)2/15/2008 11:02:23 AM
From: brushwud  Read Replies (1) | Respond to of 1573073
 
So? As money moves through the system it's taxed almost every time it changes hands.

I made the point about debt vs. equity. Why should interest be expensed by the company but not dividends? It's good public policy to incent corporations to pay cash dividends so the cash can find its best use rather than being hoarded.



To: Road Walker who wrote (370904)2/15/2008 11:13:40 AM
From: Jim McMannis  Read Replies (2) | Respond to of 1573073
 
RE:"So? As money moves through the system it's taxed almost every time it changes hands."

Not so. Manufacturers, distributors, wholesalers don't pay sales tax on raw materials, inventory etc.. The product is then sold to retailers and then sales tax is collected. Once.

Dividends are like product created from raw materials. Should only be taxed at distribution.


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