Subject: Re: a stocks and dividends question
From: Seth Gordon <sethg@ropine.com>
Date: 10 Jan 2003 10:56:51 -0500

I don't want to get into an argument here about what levels or kinds of
taxes are appropriate, but I do want to object to the phrase "double
taxation".

(1) If I receive a wage, pay income tax, and then buy something with the
remainder of the money, and pay a sales tax, this is just as much
"double taxation" as taxing dividend payments is, but there doesn't seem
to be much of a movement to eliminate it.  Funny, that.

(2) A number of large US corporations, due to various rebates and
deductions that they receive, pay no US corporate income tax, so taxing
their dividends does not constitute "double taxation".

(3) Investors who own stock through retirement accounts (and who are not
yet receiving distributions from them) are not taxed on the dividends
paid into those accounts, so there is no "double taxation" going on
there, either.

-- 
"As a witness to my honesty and goodness I have my poverty."
--Machiavelli
// seth gordon // sethg@ropine.com // http://ropine.com/sethg/cv.html //