Tax Bill

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Actually if this passes you'll see less money paid in dividends FWIW as corporations have other alternatives than paying cash dividends like buying back stock. Therefore you may actually see a decline in revenue from taxes on dividends. As Kurn mentioned it's double taxation and before we get into another argument about the ethics of double taxation, just because double taxation exists in other areas doesn't legitimize it IMO. Corporations will tend to do the "tax effecient" thing.

As far as capital gains taxes, I think you'd be likely to see less investment in economic growth but I'm sure others would reply that there's no proof of that. Depends on how much you tax something would be my response. Tax investments at double the rate of anything else and see if it leads to significantly less investment in business and thus significantly less economic growth. When does the impact on the economy become "significant" i.e. when does job growth slow by 20%?

What should the distribution of income be among the tax payers? I don't support tax increases of any kind without answering this basic question.

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Actually if this passes you'll see less money paid in dividends

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What is your reasoning?

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There will be more tax effecient ways to distribute profits to shareholders.

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There will be more tax effecient ways to distribute profits to shareholders.

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I'm not following you. If dividends aren't taxed, they would be a more efficient way to distribute profits. [img]/images/graemlins/confused.gif[/img]

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There will be more tax effecient ways to distribute profits to shareholders.

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I'm not following you. If dividends aren't taxed, they would be a more efficient way to distribute profits. [img]/images/graemlins/confused.gif[/img]

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Where did I say dividends aren't taxed??????????????????????

Where did I say that if dividends aren't taxed that it's a necessarily a less efficient way to distribute profits to shareholders?

Dividends aren't necessicarily the most effecient way to distribute profits even if the current 15% on dividend distributions was removed but that's not what I'm arguing. I'm arguing that a higher tax rate that 15% on dividend distributions could very likely lead to less revenue tax revenue to the government from dividend distributions.

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Dividends aren't necessicarily the most effecient way to distribute profits even if the current 15% on dividend distributions was removed but that's not what I'm arguing. I'm arguing that a higher tax rate that 15% on dividend distributions could very likely lead to less revenue tax revenue to the government from dividend distributions.

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Settle down, big guy. I misunderstood. I thought you were saying that if dividend taxes remained low or were lowered that vcompanies would distribute less. I thought that was what your statement that I quoted in my above post meant.

But now you've peaked my curiosity as to what methods you would feel are more efficient than simply returning the excess profits in the form of cash to its owners.