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Old 10-10-2006, 05:18 PM   #2975
sgtclub
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Join Date: Mar 2003
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More Voodoo

Quote:
Originally posted by Mmmm, Burger (C.J.)
Sure. Companies pay more dividends instead of retaining earnings adn repurchasing shares (which lead to higher k-gains taxed at the k-gains rate).

And, even putting that aside, you can't really say it changes long-run behavior on the basis of a change that many perceive will last only as long as a republican administration.
That and more deals are structured as equity plays instead of debt. The point is that it is not enough to look at tax rates and income, as Wonk seems to suggest. You also need to look at the type of tax cuts and the behavior changes resulting thereform.
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