Earnings and Profits balances place the upper limit on the amount of dividend that shareholders must recognize for tax purposes. If a corporation does not have enough E & P, then it is a return of capital, which reduces the shareholders basis or it is teated as a capital gain taxable amount if no basis is available. Please provide an argument for either making all dividends taxable and forget about E & P; or provide an argument to make all dividends payments to be treated as a return of capital to the limit of the shareholder's basis and capital gain if not enough basis. How would investor feel about this change in the regulations?