These days he's bothered by the fact that dividends are taxed at only 15%.
And to make people like Warren Buffett happy he wants to make dividends fully taxable at a top rate of 39.6% (plus state and local taxes.)
At the same time, he's also talking about reducing the top corporate tax rate from 35% to 28%.
As dividend-earning shareholders, that means we must unite and also demand an end to subsidizing corporate fat cats by having our dividends taxed twice!
Even if the corporate tax rate is reduced to 28%, our dividends - if subjected to the full income tax - will be taxed at a much higher rate than any other form of income.
First at 28% on the corporate level, then at another 39.6% for individuals, making the total tax rate on dividends 1-(0.72x0.604) or 56.5%!
That's ridiculous, and totally unfair.
The Double Taxation of Dividends is WrongIt's also very damaging to our economic system-even though modern financial theory has downgraded the importance of dividends.
In reality, this "theory" is quite wrong.
That's because the return on our investments is based on the streams of cash corporations can be made to pay. In a business that is not liquidating itself, most of that cash comes in the form of dividends.
Companies that do not pay them can defer their shareholders' returns ad infinitum.
For their investors, the buying and selling of these shares in the market is simply a series of attempts to profit from the "greater fool theory."
Take Apple Inc. (Nasdaq: AAPL) for example.
What you don't know is that Apple's $100 billion in cash is actually doing a great disservice to its shareholders.
After all, study after study has confirmed what Harvard professor Mike Jensen told us in 1986: A pile of cash is damaging to the company that has it.
It's counter-intuitive but it's true.