> On Mon, Jan 13, 2003 at 01:44:59PM -0800, Fred Foldvary wrote: > > There is also a supply-side effect from cutting the marginal tax rate, from > > less uncertainty about the company as it shifts to less debt and more > > equity, as well as more investor confidence when the profits are sent to > > the shareholders rather than retained by possibly theiving executives. > > Any idea why the dividend tax, instead of the corporate income tax, is > being proposed for a cut? If we want to end double taxation of dividends, > it makes more sense to me to eliminate the corporate income tax instead of > the dividend tax.
My guess is politics. "Cut taxes on Corporations!" does not sound like a winning issues, given the level of economic literacy of the news media (as Bill pointed out).
