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April 06, 2006


Market Participant

I'm not sure that the dividend tax cut is such a big issue. If more people saved and invested their money rather then spending it hand over fist, then a more diverse group of people would collect dividends.

Also it's very important tease out the difference between capital gains taxes and dividend taxes. Many people who collect dividends are pensioners/retired folks who use the income to supplement their retirement. On the other hand the easiest way to have capital gains is from stock options or selling real estate.

Anyone with a checking account can open an account with an online broker and begin investing. Many banks are offering high yield savings accounts that pay up to 4.6% APR.

I think the dividend tax cut was good thing because it encourages people to save.

Market Participant

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