--- "Tommie M. Jones" <[EMAIL PROTECTED]> wrote: > I was wondering what you all's opinions are on the elimination of the > dividend tax President Bush is endorsing.
Given that the rest of the income tax code stays the same, it would be better to have a tax credit for dividends, proportional to the income taxes paid by the corporation. The Bush proposal also eliminates some capital gains that are due to retained earnings, to avoid skewing policy towards paying dividends to reduce the tax. To do it really right, both realized and unrealized gains from shares of stock should be taxed, with a credit for taxes paid at the corporate level. The capital gains tax could then be eliminated. Fred Foldvary ===== [EMAIL PROTECTED]
