----- Original Message ----- From: "Jordan Hayes" <jmhayes at j-o-r-d-a-n.com> To: <lbo-talk at lists.panix.com> Sent: Monday, January 06, 2003 9:17 AM Subject: Dividends
> So Bush is proposing to cut the tax on dividends. I've always
wondered
> what was the justification for double-taxing them, but I'd think that
if
> you wanted to cut the tax on it you'd do it by making dividends be a
> "return of capital" -- that is, lower the cost basis of the
investment,
> sort of like the principal on a bond. But you typicaly don't buy a
> security from the issuer; you typically buy them on a secondary
> exchange. Still: the dividend is just following the ownership trail,
so
> I guess that's okay.
>
> I understand why dividends aren't expensed. Can anyone shed some
light
> on why dividends are taxed in the first place?
>
> Just because they can?
>
> /jordan
====================
And why do they tax our wages and then tax our purchases of food, clothing and shelter? Double taxation abounds, see "The Myth of Ownership: Taxes and Justice" by Liam Murphy and Thomas Nagel. Lefties ought to be calling for some bigtime quid pro quos on tax reduction and shifting fiscal priorities....
Ian