No. of Recommendations: 1
REITs pay no tax on taxable profits if they distribute more than 90% of their taxable profits, but investors pay more because the dividends are not qualified. Investors, however, may come out ahead because of capital gains added to their after tax dividends. So it seems to me that there is no reason for the government to make changes. But the government is not always rational.

If I was dictator, I would expand the REIT concept. After all, GE pays no Federal tax; yet, the share holders dividends are qualified. If they were classified as a REIT, at least the government would get the increased tax on dividends.

brucedoe
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