SC, you are sooooo out there. Chew on this for awhile --
Just heard a really interesting theory and that is to keep the dividends tax on individuals but allow corps a deduction for dividends.
Struck me as pretty smart, not sure I'm totally on board but it would certainly give one the most bang for the buck and incentives to the right folks (corps) if what you want is to get them to pay out dividends...
Taking the tax off dividends will lead to upward pressure in stock prices as well as a possible change in the way corporations do business. Corporations will look to making capital investments in cash from increased stock sales as well as holding back part of the profit used to pay dividends. Currently the system encourages debt instruments for capital expenses as these can be written off as tax deductions. The current system taxes the dividend at the corporate level as well as the shareholder level (double taxation).
The average investor in the stock market is 44 years old with an income of $57,000 and an average portfolio value of $28,000. Also that individual is more likely to only have a High School or B.S. degree.
This tax reduction has targeted exactly what it needs to. Its long term and it will happen. It’s not only for the "Rich"; everyone will benefit.
trask out