When Warren Buffet, formerly the richest man in America (he's down to #2 on the list at 30+ BILLION dollars) says this...
] Now the Senate says that dividends should be tax-free to
] recipients. Suppose this measure goes through and the
] directors of Berkshire Hathaway (which does not now pay a
] dividend) therefore decide to pay $1 billion in dividends
] next year. Owning 31 percent of Berkshire, I would
] receive $310 million in additional income, owe not
] another dime in federal tax, and see my tax rate plunge
] to 3 percent.
] And our receptionist? She'd still be paying about 30
] percent, which means she would be contributing about 10
] times the proportion of her income that I would to such
] government pursuits as fighting terrorism, waging wars
] and supporting the elderly. Let me repeat the point: Her
] overall federal tax rate would be 10 times what my rate
] would be.
I certainly hope someone is listening.
Dividend Voodoo (washingtonpost.com)