Eliminating taxation of Dividends
What does everyone think of the president's proposal to eliminate the double-taxation of dividends? Will this help propel economic growth?
VAdm Robert Seldon, (Jacob)
Chief of Fleet Development
To be honest, I think it's a bunch of BS. Eliminating the dividend tax will only put money in the pockets of people who own stock, which is the richer half of the nation. These are people who know how to invest their money wisely, and they're more than likely to stuff it in a savings account or into investments like collectibles or precious metals. If Bush gave the poorer people a tax break, they would go out and spend it, thereby helping to revive our lagging economy. I hate to say it, but it looks like financial wisdom nowadays may be quite foolish.
Re: Eliminating taxation of Dividends
Consider this: The more you tax a thing, the less of that thing people will buy (or use, or do, etc).
This logic is put forward all the time in calls for high(er) cigarette taxes. Proponents of such taxes (correctly) argue that increased taxes on cigarettes will mean fewer cigarettes will be bought.
The same process is at work with investing. The more you tax investing, the less people will invest.
Leaving this aside for a moment, let us consider how an economy grows. It grows by producing more goods and services, quite simply. The only way you can produce more (or to produce more efficiently) is via investment. Building new factories, re-tooling existing plants, researching new products, training employees in new skills, etc. Everything else is just transfering spending from one person or entity (a rich guy or gal or the government) to someone else (a poorer guy or gal).
By promoting investment, companies will expand more which will create more jobs.
VAdm Robert Seldon, (Jacob)
Chief of Fleet Development
The top 50% of wage earners pay 96.09% of all income taxes.
The top 10% of wage earners pay 67.3% of all income taxes.
The top 5% of wage earners pay 56.47% of all income taxes.
Simply put, us poor people have nothing to complain about. We already don't pay jack in taxes by campison. What else could we ask for?
I say yes, please repeal the double-taxation of dividends! It will help out the poor more than anyone by eventually allowing business to hire more people and to pay their existing employees more. It could and should be done.
If you're not happy in your current economic group, go to a different one! If you really want to be better off than you are now, you can be. Anyone can. It's just whether you want to put the effort into it or not. It's not easy, but it can be done. I plan to do it.
If you give the poor a tax break, it's not going to foster economic growth. Consider that the bottom 50% pay less than 4% in taxes. And where does the richest 50% start? At $26,000. The "rich" get the tax breaks since they virtually pay for all the taxes.
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