MORE TAX WRINKLES….Here’s yet another wrinkle in the Bush tax plan that I just now heard about: dividends paid by companies that report losses would still be taxable.
Think about this: you’re the CEO of a company, and as the end of your fiscal year rolls around it looks like you might show a small loss. But that means that the dividends you’ve been paying out will be taxable, so you’ll be under intense pressure to fiddle with reserves, or prebook business, or stuff the channel, or engage in some other accounting gimcrackery to turn your small loss into a small profit. Isn’t that just the thing that we’ve been trying to get away from?
Conservatives actually have a good point when they talk about the distorting effect of the tax code, and this is a good example. It’s also a good example of why it’s probably better to tax all kinds of income similarly: it prevents the relentless game playing where people try to move income from one place to another solely to get the best tax rate.
I’m not saying this is conclusive evidence that we shouldn’t tax different types of income differently, but there is a cost to doing it.
JUST AN IDEA….While I was over at Instapundit reading his response to the John Lott affair, I noticed that he doesn’t have Atrios on his blogroll. Doesn’t that seem odd, what with all the fine work he did on that other Lott affair last month? Perhaps we should all start an email campaign to get him added?
HOLIDAY CHOCOLATE….skippy reports that yesterday he ate the last piece of candy left over from a holiday box of See’s chocolates.
Huh? By the second week of January he still hadn’t finished up one lousy box? Mine was polished off by….hold on a second….December 27. In fact, a detailed mathematical modeling of skippy’s chocolate eating habits, assuming that mrs. s didn’t eat any, produces an average chocolate eating velocity of approximately 1.6 pieces per day.
Yikes! What kind of a fiendishly disciplined monster is this man?
STILL ANGRY AFTER ALL THESE YEARS….Tom Spencer brings us up to speed on the Counter-Clinton Library, a plan to build of a library of anti-Clinton bile across the street from the official Clinton Presidential Center and “?LIE-brary” in Little Rock.
The letter from the founders is moderately entertaining, as these things go, and it will probably come as no surprise that the person they really hate isn’t Bill so much as Hillary. “Most of the media want to see Hillary become President and they aren?t going to do anything to derail her,” they say.
I’ve noticed that myself. In fact, Hillary’s people offered me a substantial sum not to write this post, but I’m one of the few bloggers with the integrity to stand up to her, so I refused. Unfortunately, that probably means my life is in danger, so if blogging here at CalPundit stops suddenly, you’ll know what happened.
Of course, you’ll never be able to prove anything….