In a message dated 1/7/2003 12:12:23 PM Eastern Standard Time, [EMAIL PROTECTED] writes:
> This idea of eliminating the tax on dividends is outrageous on > so many levels, one hardly knows where to start. Ellen, this is an awesome post! > Second. To the extent that this puts pressure on firms to actually > increase dividend payout, this means less funds available > internally for investment. I don't think this will even put pressure on firms to increase payouts, since dividends are already based more on individual profitability than competitiveness. I agree less funds will be used for investment or hiring though - dividends on stock can be used for other things - as part of executive incentive packages, deferred compensation packages - replacing the old amounts of stock with new amounts + non-taxed dividends. Also, since stock was the chief currency of acquisition throughout the 90s, not taxing dividends increases its currency value. So, more mergers which generally equal more job cuts. > Third. Bush was quoted yesterday saying that this will > encourage people to buy stocks and thus will encourage > "investment." Which only makes sense if you don't know > what investment means. Yeah. Bush acting as equity analyst and promoting stock market investment is scary. > Finally, while I'm on this rant, the plan is also said to contain > funds for "re-employment" rather than "unemployment" insurance. > The idea is that the unemployed would receive a lump-sum payment > which they could use to seek work or retrain. If they find work right > away, they keep the money. This, supposedly, eliminates the > "incentive to remain unemployed" of the current UI system. > So much > for involuntary unemployment. Can you explain the details of this part a bit more? I just spoke with a laid off WorldCom worker. She hasn't found a job in 6 months and is supporting two kids and a husband who is on a donor list for a liver transplant, though they have no health insurance. Her car was repossessed and job interviews have not been forthcoming. Nothing voluntary about her unemployment. I can't imagine it's as hard for Bush to get up each day as it is for her. Nomi
