Essentially, it encourages companies to split their shares and then engage in stock buybacks rather than issuing a dividend, which encourages short-term speculation as opposed to investing based on long-term fundamentals of a company. I think the corporate tax should be completely removed and then dividends and capital gains taxed the same.

I also think that the solution to the problems that corporations are having with unions is to give union members preferred stock rather than extra benefits, all these stupid rules about paying people who aren't working, etc. Make them have an upside in the company. If companies paid dividends as their primary means of paying shareholders, this gives the union workers an incentive to actually work, rather than just dick around.

Of course, I would also ban naked puts because it is nothing but sheer speculation when you try to sell a stock you don't own. Those three things would probably restore a great deal of sanity to the markets.