James F. Loebl (Valparaiso) has published Qualified Dividends: Do They Avoid Double Taxation or Do They Double Shareholders’ Benefit?, 56 DePaul L. Rev. 1139 (2007). Here is the Conclusion:
Permanently extending the dividend tax cut would represent a major failure in tax policy. It would not accomplish the goal of integration to tax income fully only once, nor would it promote economic growth and well-being as proponents claim. Instead, it would be a costly tax break that would benefit taxpayers in the highest quintile of the income distribution. Accordingly, the dividend tax cut should be allowed to expire.
