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klono

12/22/02 12:29 PM

#58107 RE: Zeev Hed #58103

Thank you, and you are welcome Zeev. My post was directed at one simple objective. Publically traded companies, and to be specific Microsoft, should be made an offer they cannot refuse by the tax code; PAY A HEALTHY DIVIDEND. It is not the fault of Bill Gates that the system is rigged in his favor. Microsoft is a publicly traded company that is making Billions annually. It is loaded up with Billions in cash that it is NOT investing in the business, nor will it ever. Bill Gates sells 1 or 2 million shares a month and pays less than 20% on this income.
1. Bill sells stock.
2. Bill exercises options.
3. Microsoft uses a large % of it's cash flow to replace the options exercised by buying microsoft stock on the open market.
4. Sheep that still have fleece are buying Bill's stock.
Solution:
1. As you said raise the top marginal corp tax rate on publicly traded corps that fit this criteria.
2. Make the dividends tax deductable to the corps that suffer this super bracket.
Result:
1. The shareholders, in particular pension plans, benefit tremendously.
2. Microsoft stock goes up in value.
3. Gates pays more taxes, but he is still more wealthy on paper.
Comment...Anyone that suggests dividends should be tax free to the recipient is either uneducated as to the situation, a pig, or both.
Now what?

k

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Koikaze

12/22/02 1:12 PM

#58112 RE: Zeev Hed #58103

For those interested, I've just updated the Zeev's Ideas Board (#board-1351). It's worth noting that some of the material in the DOW GAMBIT post describes attitudes and mindset. The Near Term post gives an inkling of the effect an adverse market has on people's feelings. This information may be helpful for some readers.

Fred