I read Daniel Yergin's Jan. 19 Opinion piece, "Dividends as Corporate Reformer," with great interest. While I agree with him that double taxation of corporate profits is wrong, I think there is a better way to resolve this injustice. What I suggest is an elimination of corporate tax and, instead, taxing the business owners (stockholders) for all profits, dividends and capital gains at their personal income tax rate. This plan would do away with most corporate lobbying for special tax loopholes, a practice that only corrupts our politicians. This method would not water down the value of IRA accounts and 401(k) plans.
Tax corporate profits; allow corporations to write off the dividends that they pay out to their shareholders; tax dividends. What's so complicated?
Michael J. Farrell