Question

Spinaroonie

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How does the elimination of the taxation of stock dividends help improve the overall economy? Doesn't it more provide more incentives to be a CEO and do more Tyco, Enron-esque style management?
 
Would you like to have me post something so you can keep this thread alive for a few days?

;)
 
More money in peoples pockets

means more spending.....means more production....means more jobs.

Also, it will encourage companies to PAY out cash, as opposed to financially manipulate.
 
Spinaroonie said:
How does the elimination of the taxation of stock dividends help improve the overall economy? Doesn't it more provide more incentives to be a CEO and do more Tyco, Enron-esque style management?
I haven't been following this. LC mentioned something to me about GWB's tax plans, but I hadn't really checked into it.

I do know that if I didn't have to pay as much capital gains tax on my stock sales I would be able to last a little bit longer before being put out on the street. OTOH, if the job market doesn't pick up and the stock market doesn't turn around, in about 6 months to a year I will be forced to liquidate some funds I am invested in. If that happens I will loose at least 30% of what I had invested - probably more - not to mention how much they were worth before the crash (which was quite a bit more than I had invested).

I think everybody here knows how I feel about income tax of any kind - I much prefer a sales tax. With regards to Enron, et. al., that is a different issue.
 
Re: Re: Question

The Heretic said:

I do know that if I didn't have to pay as much capital gains tax on my stock sales I would be able to last a little bit longer before being put out on the street. OTOH, if the job market doesn't pick up and the stock market doesn't turn around, in about 6 months to a year I will be forced to liquidate some funds I am invested in. If that happens I will loose at least 30% of what I had invested - probably more - not to mention how much they were worth before the crash (which was quite a bit more than I had invested).

Sadly, the capital gains tax and the tax from the sale of your stock would still apply. The tax cut only applies to dividends, most of which are held by the elderly (who will put it in the bank) and large corporate heads (who will put it in the bank)
 
Re: Re: Re: Question

Spinaroonie said:
Sadly, the capital gains tax and the tax from the sale of your stock would still apply. The tax cut only applies to dividends, most of which are held by the elderly (who will put it in the bank) and large corporate heads (who will put it in the bank)


Or use it to buy perscription drugs or use it to buy another corporate jet. :)
 
Spinaroonie said:
How does the elimination of the taxation of stock dividends help improve the overall economy? Doesn't it more provide more incentives to be a CEO and do more Tyco, Enron-esque style management?

The SEC changes have arguably closed off the "easy money" trend for now. WorldCom's new CEO, for example, is contractually bound to make that company a model of corporate governance...it's tied to his salary, bonus and continued employment.

Putting more money in the hands of citizens...any citizens... versus the IRS and government coffers is always good for the economy.

The President is a Republican seeking re-election in 2 years. It should come as no surprise that he will put economic stimulus incentives in the hands of those who he can sway to vote for him next time....in this case, aging Democratic and swing vote Boomers between 45-55, being their peak income earning years.

To persuade the young and the economically disadvantaged to vote Republican or more specifically for Bush...is a much more expensive sale. Old wealthy people will vote for him anyway.

Those are my thoughts on how it'll work, and why he's doing it.

Lance
 
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