Intel Corp (INTC)

[fastpathguru]

Seems like the tax burden ought to be shared between the corporation and the share owners.

It is shared when the corporation pays the tax. Don't you think the best measure is how much net tax is paid on the earnings? How much of our wealth is the government entitled to?

Q) How much of a corporation's income are you "entitled" to in the form of dividends?

A) Whatever the corporation feels like.

"Entitled", indeed.

Intel paid 27.2% tax last year. Shareholders paid an additional 15% tax when those earnings were distributed in the form of dividends.

Q) Does that 15% apply to the same number of dollars as the 27.2% did?

A) Only if Intel paid out every dollar of corporate-taxable income in the form of dividends.

In fact, Intel EPS was .65 while dividend was just .21/sh...

So the dividend portion of your "net taxes" is more like 5%, for a 32.2% total "net taxes".

fpg