Guest Column: Tax incentives

M.L. Simon

Guest Column: Tax incentives

By M.L. Simon

Noxious tax incentives that favor capital gains and

punish dividends not only facilitate accounting fraud, they also greatly increase stock market volatility. The value of dividend-paying shares can stay fairly stable for long periods of time. However, shares that primarily provide their return on investment in the form of capital gains lose all their attractiveness as soon as prospects for further price increases fade. Earnings are matters of opinion—cash dividends are statements of fact!

M. L. Simon is an industrial controls designer and Free Market Green. (c) M. Simon – All rights reserved.

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