thegreatcrash.com press release

[Max Sawicky]

Official Wall Street doctrine declares that dividends are bad because they
are taxed as ordinary income (up to 39 percent for wealthy stockholders),
whereas using the same money to buy back stock causes the stock to gain in
value, with tax on the gain, if held for at least one year before sale,
being
limited to 20 percent. By refusing to pay dividends, corporations are
further
enriching shareholders. This is another aspect of the New Economy, one that
sheds interesting light on the idea that everyone benefits from stock
ownership.
Ken Lawrence
>>>>>>>>>>>>>>

But this has been true for a long time.  Dividends
(and interest) have been taxed at higher rates than
capital gains.  The differential has moved around,
and increased with the capital gains cuts in 1997.
It may have been higher in previous periods; I
haven't checked, but prior to 1980, for instance,
the top marginal rate on ordinary income was much
higher in absolute terms and possibly relative
to the CG rate.

mbs