Microsoft: No dividend so BillG doesn’t get slammed with taxes?

Ralph Nader and Merrill Lynch & Co. technology strategist Steve Milunovich have both posted reports recently calling for Microsoft to use its $36 billion cash hoard to start paying dividends. One clear difficulty is that Bill Gates would get 12% of any payout, which would more than likely then be subject to income tax at a rate of 39.1%; a $5.39 billion payout (25 cents per share per quarter) would pay BG nearly $647 million of which he would send the IRS nearly $253 million. OTOH he has transferred a large amount of MS stock to his foundation, which presumably could always use a few more million dollars to disburse to good causes. The only other comparable tech company, Intel, pays a small (8 cents/share) dividend. MS claims that tech companies need cash for various reasons but their pile always seems to be going up. As a small MS shareholder, I’m not sure which way to lean, to be honest, but this is a very interesting question.