Quote:
Originally posted by taxwonk
Yep. And that's ignoring the fact that the dividend tax cut doesn't help the vast number of Americans who have no stock investments at all. We can also talk about the fact that the elimination of the top tax bracket helped wealthier people far more than the expansion of the 10% bracket got poor people off the tax roles.
Or the fixation on the estate tax, which hits so few people it's almost voluntary, but it produces revenue which has to be made up elsewhere in the tax system if repealed.
There are all kinds of things I don't like about the Bush tax cuts. But they pale in comparison to the basic fact that he keeps talking about simplifying the Code, but keeps making proposals or backing Congressional proposals that make it more complex and fucked up than before.
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1 (honest) question and then a few comments:
When the money is eventually pulled from the tax deferred account, at what rate are the dividends taxed?
eta:
Put aside supply side economics (which you must do in order to have the view that you have). I think you are not looking at the big picture. From a corporate finance prospective, a reduction in the dividend tax makes dividend payments more likely (see, e.g., Microsoft), which often makes equity financing more attractive/less expensive then debt, which allows the savings to be spent in other ways (R&D, new hirings, etc.).
