--- Wei Dai <[EMAIL PROTECTED]> wrote: > Cutting taxes on dividends while keeping taxes on capital gains seems to > provide a perverse incentive for companies to retain as little profits as > possible, leading to a higher rate of corporate bankruptcy in the future.
My recollection from reading about it is that the proposal does indeed cut the tax on capital gains to the extent it is due to retained earnings, as the attempt is neutrality with repect to paying dividends or not. However, to truly do capital gains right, it needs to be indexed for inflation. Fred Foldvary ===== [EMAIL PROTECTED]
