MORE ON DIVIDENDS!….Reader Eric Mauro begs me to keep writing about the proposed dividend tax cut. Hey, it’s Sunday, so why not?
And there is an odd angle to the whole thing that I haven’t mentioned before. Sure, a dividend tax cut is about the least likely candidate there is to provide any economic stimulus, but there are other contenders for that honor as well. Top of the list would be a cut in the capital gains tax, a Republican wet dream since the early 80s. So why not that?
The real scandal is that not even the Republicans think this is a very good idea… it’s a giveaway to the CEOs of big companies, to make their stock more attractive versus that of small capital-gains paying companies. Then the CEO gets to keep his job.
….This is mostly corporate socialism for big, slow-growth companies.
Considering Bush’s recent nominees to economic posts, he does seem to have soft spot in his heart for big, slow-growth companies. Maybe Eric is on to something here.