Saturday, January 11, 2003

"Deemed Dividend Reinvestment Plans"

The Bush Tax Plan contains a capital gains provision worth looking at. It is called DDRP, and it would allow people selling stock to reduce their recognized capital gain by a factor determined by the amount of taxed retained earnings the firm had accumulated during their holding period. More work for CPAs!

Tuesday, January 07, 2003

U. S. Stretches the Truth About Iraq. Op-ed in the L.A. Times
The Bush Tax Plan

Here you can read a summary of President Bush's Tax Plan. Naturally the Administration got the dividend tax issue backwards. It would be much better to allow corporations to expense dividends paid than to allow individuals to deduct their dividend receipts. After all many dividends go to IRA and pension funds accounts where they are already sheltered. And the whole point is to put dividends on the same plane as interest payments which, of course, are deductible to the payor and taxable to the payee. What a world!
Lifted from

January 7-8 -- Trial lawyer's purchase of Alabama governor's house said to be "arm's-length". "Wray Pearce, the Birmingham accountant who bought Gov. Don Siegelman's Montgomery home for twice its appraised value, was acting as an intermediary for trial lawyer Lanny Vines, who subsequently bought the house from Pearce, according to court records filed last month in a lawsuit involving the two men. ... The governor and his representatives have described the house sale as an arm's-length transaction, with the governor and his wife placing the property on the market, and a buyer coming along and paying the asking price. ... None of the records in the court file specifically state why Vines used his longtime accountant as an apparent straw buyer for the home. Nor do they explain why Vines was willing to pay a sum that a county appraisal and a Register review showed was about twice the home's value." Vines is considered one of the most politically influential plaintiff's lawyers in Alabama. (Eddie Curran, "Papers show trial lawyer paid accountant for Siegelman house", Mobile Register, Nov. 11).