That is right, the dividends get paid out of retained earnings. The corps dont get a deduction for them, but why should the rich individuals get such a tax break? Im tired of that bull, give something back to joe the plumber!!
I was once "Joe the Plumber". I worked and saved and invested. I lived below my means and always paid my credit card bills 100% when due. Now, after years of hard work and self control, my investments are taking care of me. I will not rely upon the gov't to support me, even though I have always paid my taxes. When I retire, the gov't will adjust my social security downward because my investment income can take care of me. How is that fair? The taxes that I paid on MY hard work will go to someone else. Likely someone who was either lazy or corrupt whio has sucking transfer payments from the gov't all of his / her life.
Obamation wants to penalize business. Guess what, if there are no busineses, there is no economy, and there are no jobs.
America needs some lessons on real world economics, civics, gov't, taxation.....instead of MTV and American Idol.
Its not the rich that get a "tax break". Many people are not rich and own stock through [a] direct ownership [b] mutual funds and [c] employer sponsored stock plans. NO ONE who owns stock should not be taxed on dividends. Just as NO ONE should pay a tax for dying, which is what the estate tax does.
BTW, retained earnings only occur if there is profit. Bottom line is that profits should only be taxed once. Either at the corporate levl or at the individual level...but not twice.
And yes, that applies to Dems and Reps........there are many very rich people who fall into each camp.