Jay Morrison, Senior Regulatory Counsel, National Rural Electric Cooperative Association: I was disappointed to see that two different articles in the October 2005 issue erroneously stated...
Letters to the Editor / Corrections, Clarifications
that the first effect (understating earnings by failing to amortize the sale at a discount) was the more important and driving factor.
Thus, the headline to the sidebar should have emphasized that relying only on cash flow reporting would likely understate Mirant's financial outlook.
The editors regret the error.The editors regret the error.
Issue of June 15, 2003:
In the "Business & Money" column, highlighting legislative moves to repeal income taxes on corporate dividends, we reported a proposed reduction in the tax rate that turned out to be greater than the size of the reduction as stated in the final version of the bill that was eventually passed by Congress and signed by the president (after the magazine had gone to press).
The final legislation would freeze the tax rate on corporate dividends received by individual taxpayers at 15 percent, for anyone in any of the four top tax brackets, which now carry marginal tax rates running to as high as 38.6 percent. The freeze would start this year and run through 2008.
Individual taxpayers in the 10 percent or 15 percent brackets would pay a 5 percent tax on income from corporate dividends for the 2003-2007 tax years, but then would pay nothing for 2008.
For each group of taxpayers, the tax rate would revert in 2009 to the current marginal rate for the bracket in question.
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