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 opinioncash 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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