Reply #12: I don't follow you..

[umass1993]

I think they should be restricted to a particular purpose, and when they exceed that, they pay out their excess as dividends rather than diversifying, merging and otherwise investing and expanding.


So what! if all profits get reinvested. If it's domestic, then this would be money put into creating jobs and efficiency within the corporation. It is good for corporations to grow, if they are growing within the US.


The tax law should treat the two uses of profits neutrally or perhaps encourage 'the people' - or dividend over the growth of corporations.



This is exactly the wrong thing! The people that get dividends are rich people that do nothing! It is a wealth sink.

I'm afraid you don't understand. I hope you take the time to think it through.