F. George McDuffee wrote:
snip
I suggest you check the current US tax regulations on this. If
you are saving for retirement, properly constructed 401k or
IRA/Keogh should shield any dividend income from taxation until
it is withdrawn and spent.

On the other hand, why should stockholders *NOT* pay taxes on
their income? When they don't pay their taxes, someone else must
make up the shortfall or it adds to the deficit (with compound
interest to the bond holders). We seem to have created a class
of nobility in this country that feels that by right they are
exempt from paying their full share of the cost of government,
while demanding at least their share of governmental services
such as police, fire, courts, patents, customs, etc.

You look at the exceedingly small number of very well run
American corporations with long-term ethical management, I look
at the much larger number of poorly run American corporations
with short-sighted amoral management, and we naturally reach two
very different conclusions.

Changes in corporate policy by changes in the board of directors
is a pipe dream that Wall Street still sells and the suckers
continue to buy. SEC stock proxy rules, staggered director terms
and "poison pill" defenses are specifically designed to prevent
this. The only thing that has ever put any starch in a
director's backbone is the threat of a stockholder class-action
lawsuit for breach of fiduciary duty and/or the Sorbains-Oxley
act with some jail time.

I am continually amazed that the mutual funds, that now own a
majority of corporate stocks, allow the corporations to amass and
manage excessive amounts of retained earnings and have done
nothing to stop the profit skimming attributable to excessive
executive compensation.

If you directly or indirectly own stock in a corporation, those
earnings are *YOUR* money.

Unka George
(George McDuffee)

Once again you seem to believe I am fresh off the boat. I am very
familar with 401K's, Sep-IRA's, Roth IRA's , but not all that familar
with Keogh plans.

And while helpful I do not have all my money in IRA's or 401K plans.
For one thing I am way too old for your suggestions. Much of my stocks
were bought before there were any 401K or IRA's. And although I fully
funded my IRA's and contributed as much as possible to my 401K plan, I
also bought stocks. Hey it is my money and I get to decide if I buy a
new car and have someone service it, or buy a second hand car and do
the service myself. I did the later and bought stocks instead.

Okay bright guy, tell me why the government should tax corporate
profits and then tax the same money again when the shareholder is paid
some of that after tax money as a dividend. The money has already been
taxed once.

And as far as not paying taxes, I expect that I pay more taxes than
you. Please explain why you think I should pay more than my share of
taxes..........Because I do. Currently I am paying social security
taxes, medicare taxes, and also paying into medicare out of my social
security benefits,and paying taxes on 85% of my social security
benefits. Plus income taxes including income taxes on my mandatory IRA
withdrawals.

Why do you care about those companies that are poorly run and have
short sighted management? I don't see anyone forcing you to buy their
stock. And why do you believe ( I can't use think here ) that most
companies are poorly run?

And Damn Straight those earnings in the companies whose stock I own are
MINE and sure as HELL don't want your help or the governments help in
deciding if I want the company to pay dividends or grow the company.

If you plan of forcing companies to pay out half of their profits in
dividend were implemented, we would see a depression. Companies would
not be making as many capital investments, so those companies that sell
capital equipment would dive, people would be fired, and bam, more than
a recession. It would be a depression.

Dan