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Why would they pay a tax to raise money from the capital markets when according to you, they save money by paying a regular salary? And if you were really aware

by codexon 17y ago

Why would they pay a tax to raise money from the capital markets when according to you, they save money by paying a regular salary? And if you were really aware that USG doesn't pay a dividend, then why did you bring it up as evidence that it applies to Warren Buffet? So far the burden of proof lies on __you__ to prove that Buffet gets most of his income from dividends since all the evidence points otherwise. Not the other way around. This is basically what you are saying: Buffet probably earns a lot through dividends in his personal stocks instead of the massive holdings he has from Berkshire, but I have absolutely no evidence. I will also ignore all evidence that the stocks he holds pay out no dividends, and the fact that he has publicly denounced dividends and doesn't pay them in his own billion dollar company Berkshire. Prove me wrong beyond a resonable doubt.

byrneseyeview 17y ago
Why would they pay a tax to raise money from the capital markets when according to you, they save money by paying a regular salary? Historically, companies that need to raise lots of money have found it easiest to do so by being publicly traded. Even though there are tax disadvantages, it can still be net beneficial. I am not arguing that he just gets his income from dividends. I assume capital gains are part of the mix. Your claim is that he receives stock options, right? (If he trades them, the capital gains treatment is not so friendly.) But who is giving him these options? And why? My argument is just that he's more likely to make money from dividends and capital gains than from stock options. Obviously, that's not his only source of income. He's traded copper futures. Maybe he gets speaking fees. Maybe he has an eagle-eye for dropped change, and tracks down the droppers so he can file a 1099 and report the income he earned from them.
- codexon 17y ago
  My argument is just that he's more likely to make money from dividends and capital gains than from stock options. Then this is something that you will have to prove with cold hard facts since all the evidence points otherwise...and not just because you don't like what Warren Buffet is saying.

by codexon 17y ago

byrneseyeview 17y ago

Why would they pay a tax to raise money from the capital markets when according to you, they save money by paying a regular salary? Historically, companies that need to raise lots of money have found it easiest to do so by being publicly traded. Even though there are tax disadvantages, it can still be net beneficial. I am not arguing that he just gets his income from dividends. I assume capital gains are part of the mix. Your claim is that he receives stock options, right? (If he trades them, the capital gains treatment is not so friendly.) But who is giving him these options? And why? My argument is just that he's more likely to make money from dividends and capital gains than from stock options. Obviously, that's not his only source of income. He's traded copper futures. Maybe he gets speaking fees. Maybe he has an eagle-eye for dropped change, and tracks down the droppers so he can file a 1099 and report the income he earned from them.

codexon 17y ago
My argument is just that he's more likely to make money from dividends and capital gains than from stock options. Then this is something that you will have to prove with cold hard facts since all the evidence points otherwise...and not just because you don't like what Warren Buffet is saying.