Dividends, taxes, and the continuing economy

An increase to taxing dividends will slice the economy in many ways. First, the companies issuing dividends would lose value since the incentive to invest there would decline. Next, seniors are the largest investing group that rely on income from dividends. Taxing their income, when so many also use Social Security, will further burden that system.

Zore weighs in as we move to finance topics. He asks that the regulatory environment of 51 states and districts be streamlined into one set of rules.

Zore explains that Northwestern had zero exposure to sub-prime. How did they know, McCain asks. Northwestern figured out a long time ago that lending money to people who didn’t have to report their income, or using inflated appraisals, was not sound business.


  1. That’s because Northwestern Mutual is not greedy. I know you argue that “not everyone deserves a bailout” but these companies that took part don’t get a bailout either.

  2. Winegirl says:

    As a career underwriter with Northwestern Mutual, I can attest that we have often been pressured to do things the way all the “others” do things–i.e. take shortcuts, fall for the big spiel, be impressed by flash without substance, look at the next quarter’s results only. There was a time when it looked like NML would become a stock company like all the other insurance firms out there. Now NML doesn’t look so stupid with its stodgy business practices, mutual corporate organization and putting the policyholders first by doing things the right way, not the easy way. No one gets though my door on a song and a prayer, we “trust but verify.”