[Maximum Leader]

Of course the problem with dividends is the double taxation.
The company pays a corporate tax on its earnings and if whats left over is sent to the shareholders as dividends, then the shareholders pay income tax on that as well.

What do you think the effect would be if common stocks were treated like Real Estate Investment Trusts (REITs)?
REITS pay no corporate income taxes as long as they pay out at least 90% of its earnings as dividends, therefore the income is only taxed once.
When you think that probably most of the income the company makes is scooped up by either taxes or retained earnings.... treating stocks like REITs (and requiring 90% of earnings to be passed through to shareholders) would probably juice up the dividend return substantially.
Anyways, I'm curious what you and the gang think about this.

[elbucko]

What do you think the effect would be if common stocks were treated like Real Estate Investment Trusts (REITs)?

Anyways, I'm curious what you and the gang think about this.

I like it. I think it would be a welcome change toward real economics, rather than the cut and paste system intellectuals have encumbered the economy with.