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SDS (Seductive Dividend Stocks)
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Sorry I hide my true identity but I'm a physicist/engineer, native contrarian and idea generator. I am an eclectic dividend investor with motto "In God We Trust, All Others Pay Cash" applied to companies I invest in. I like to read /and read a lot - did you look on my SA photo 8-)? / including... More
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  • My 2 Cents On Taxes. 26 April 2012 4 comments
    Apr 26, 2012 8:56 AM

    Let me say in front - I hate anybody who puts hands in my pocket and try to steel my money. It can be a robber or a greedy unprofessional service guy or a taxman - anybody. I earn my money by hard work and I believe that anybody must keeps his "dirty" hands out.

    But I understand that any citizen has to pay taxes even if a government wastes half of money it collects for nothing. I believe that tax code must be simple and short - maximum 200 pages and any trick of individual or company with taxes must be prosecuted by a government. On another hand, the government cannot change taxes on political or economical or any another fashion or will without citizens referendum or voting. The only exclusion is a war or country disaster (but the latest probably should be covered by a reserve) when a president or some government body can post temporary tax with clear explanation of it purpose and expiration.

    Now as a dividend investor in a dozen years from retirement I concern about dividend taxes. Looking on history of dividend taxes in USA I can easily conclude that persons imposed these taxes had no consistency and no respect to investors at least and probably even not fully functional brains at most. I believe that dividend taxes as well as all other taxes should be fixed and not change with time. I believe that dividend taxes must be equal to capital gain taxes. If a government has 2-tier capital gain taxes (and I agree that tax on short-time gains should be higher than long-term capital gain tax), the dividend taxes must be the same. An investor should pay tax equal to short-time capital gain tax on dividend of stocks she has less than 1 year. Also an investor should pay tax equal to long-time capital gain tax on dividend of equity she has more than 1 year. Again tax code must be simple and short, understandable and free from loopholes, almost permanent (I think the president should have right to accept only 1 change during his 4-years term) and legaly consistent.

    Being a political refugee I probably more active than an average citizen (so I sent out this proposal to my representatives in US Congress) but I urge any dividend investor to delivery this message to her representatives. Our voices will be count and hopefully change tax rules if we'll be persistent in protecting our pockets from "dirty" hands.

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Comments (4)
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  • Ed Bickford, CPA
    , contributor
    Comments (316) | Send Message
     
    Thanks for sharing your views with your representatives and us. If more people did we may see change.
    16 Nov 2012, 05:58 PM Reply Like
  • Smallstep
    , contributor
    Comments (1680) | Send Message
     
    SDS,
    Thanks for putting the link on DVK's article. I like your idea......" I believe that dividend taxes as well as all other taxes should be fixed and not change with time. I believe that dividend taxes must be equal to capital gain taxes. If a government has 2-tier capital gain taxes (and I agree that tax on short-time gains should be higher than long-term capital gain tax), the dividend taxes must be the same."

     

    The most important point you wrote is---"Again tax code must be simple and short." Love it a lot.

     

    I never call them(Congress Rep.) but I will speak out.
    ------Small
    16 Nov 2012, 11:11 PM Reply Like
  • SDS (Seductive Dividend Sto...
    , contributor
    Comments (4427) | Send Message
     
    Author’s reply » Ed & Smallstep,
    Thank you for comments.
    SDS
    18 Nov 2012, 11:24 AM Reply Like
  • SDS (Seductive Dividend Sto...
    , contributor
    Comments (4427) | Send Message
     
    Author’s reply » I read to excellent article "The Untax Promise" ( http://bit.ly/13HaEA7) in the text. The only problem I see from cases presented in the paper is "ALL discussions about legal status of US taxes were solved by US court". Of course US court is biased - their salaries come form taxes US government collected. It is the same as ask barber if you need a haircut - (s)he always answer "Yes".
    SDS
    21 Apr 2013, 12:09 PM Reply Like
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