Author Topic: Dividend tax to rise to 44.6%  (Read 1043 times)

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Offline Jeffy

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Dividend tax to rise to 44.6%
« on: April 19, 2010, 06:20:55 PM »
I'm sure only people making over $250,000 will be subject to this tax, since it's only those rich people that invest.

They're Clipping Your Dividends
William Baldwin, 04.08.10, 08:40 AM EDT
Forbes Magazine dated April 26, 2010
How to duck a 44.6% dividend tax.


If you are a prosperous saver, the federal tax rate on your dividends is about to triple. What are you going to do about it?

You didn't know about this tripling? Pay attention. There has been a great transformation in fiscal policy. Congress has decided to bail out deadbeats and condo flippers, and to finance this generosity by taxing marriage, work and savings. Ashlea Ebeling describes the first two assaults in The Obama Tax Hikes--What to Do. Let's now consider savings--specifically, four ways in which dividend earners will be punished.

Come next January the favorable 15% rate on dividends will expire, making them subject to taxation as "ordinary income." At the same time the maximum rate is kicking up from 35% to 39.6%. The third thing that will happen in 2011 is the resurrection of a rule that ostensibly limits deductions but for the majority of taxpayers is nothing but a boost in their tax bracket. This rule adds 1.2 percentage points to your rate.

In 2013 comes a fourth tax increase: a 3.8% surtax on investment income. Add it up. Dividends that used to be taxed at 15% are set to be taxed at 44.6%....

http://www.forbes.com/forbes/2010/0426/opinions-william-baldwin-obama-dividend-tax-side-lines.html


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Offline michigancat

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Re: Dividend tax to rise to 44.6%
« Reply #1 on: April 19, 2010, 06:43:43 PM »
Didn't Obama propose making it 20% for top earners and keep it at 15% for everyone else?  :dunno:


Sugar Dick

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Re: Dividend tax to rise to 44.6%
« Reply #2 on: April 20, 2010, 09:35:26 AM »
Didn't Obama propose making it 20% for top earners and keep it at 15% for everyone else?  :dunno:



If you don't know what your talking about, don't post. 

Offline michigancat

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Re: Dividend tax to rise to 44.6%
« Reply #3 on: April 20, 2010, 09:55:13 AM »
Didn't Obama propose making it 20% for top earners and keep it at 15% for everyone else?  :dunno:



If you don't know what your talking about, don't post. 

Quote
President Barack Obama has proposed that the current rate of 15 percent on dividends be extended for most taxpayers. He’d raise the tax on dividends for individuals making $200,000 or more and families making $250,000 or more to 20 percent.

http://thehill.com/blogs/on-the-money/domestic-taxes/92077-wall-streets-big-rally-sharpens-focus-on-tax

:dunno:

Sugar Dick

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Re: Dividend tax to rise to 44.6%
« Reply #4 on: April 20, 2010, 10:25:56 AM »
Didn't Obama propose making it 20% for top earners and keep it at 15% for everyone else?  :dunno:



If you don't know what your talking about, don't post. 

Quote
President Barack Obama has proposed that the current rate of 15 percent on dividends be extended for most taxpayers. He’d raise the tax on dividends for individuals making $200,000 or more and families making $250,000 or more to 20 percent.

http://thehill.com/blogs/on-the-money/domestic-taxes/92077-wall-streets-big-rally-sharpens-focus-on-tax

:dunno:

15% is the currently the highest rate on qualified dividends, "everyone else" people pay less.

Obama says things that are politically convenient to say, like "I'm only raising taxes on people making over $XX". 

If you understood that these dividend rates apply to all non-pass thru entities, not just people who own stock as a passive investment, you might somewhat understand the ramifications of doing this.  Since you don't, I'm not going to spend the time to explain to you why this is more than just a tax on evil rich people.

Offline michigancat

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Re: Dividend tax to rise to 44.6%
« Reply #5 on: April 20, 2010, 10:34:28 AM »
Didn't Obama propose making it 20% for top earners and keep it at 15% for everyone else?  :dunno:



If you don't know what your talking about, don't post. 

Quote
President Barack Obama has proposed that the current rate of 15 percent on dividends be extended for most taxpayers. He’d raise the tax on dividends for individuals making $200,000 or more and families making $250,000 or more to 20 percent.

http://thehill.com/blogs/on-the-money/domestic-taxes/92077-wall-streets-big-rally-sharpens-focus-on-tax

:dunno:

15% is the currently the highest rate on qualified dividends, "everyone else" people pay less.

Obama says things that are politically convenient to say, like "I'm only raising taxes on people making over $XX". 

If you understood that these dividend rates apply to all non-pass thru entities, not just people who own stock as a passive investment, you might somewhat understand the ramifications of doing this.  Since you don't, I'm not going to spend the time to explain to you why this is more than just a tax on evil rich people.


I'm not taking issue with the theory against raising the dividend tax rate (I am also opposed to it), I just think the OP was very misleading.

What was the dividend tax rate under Regan?  :dunno:

Sugar Dick

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Re: Dividend tax to rise to 44.6%
« Reply #6 on: April 20, 2010, 11:04:36 AM »
It's not misleading, it's just over-dramatic.  They're (Congress) not going to allow cap gain rates to expire, which includes qualified dividends.  While that's the bulk of the reported 44%, it doesn't mean everything else isn't true. 

Realistically dividends are already taxed at about 44%, 35% at the corporate level and 15% again at the personal level.  Seems pretty unfair as it is.  Is there really a need to tax more?

To answer your second question, don't know and don't care.  I won't be getting any dividends in the 1980's any time soon so I don't have much incentive to look that up for you.  Also, Ronald Reagan died a while ago.

Offline michigancat

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Re: Dividend tax to rise to 44.6%
« Reply #7 on: April 20, 2010, 11:06:46 AM »
To answer your second question, don't know and don't care.  I won't be getting any dividends in the 1980's any time soon so I don't have much incentive to look that up for you.  Also, Ronald Reagan died a while ago.

Great points, sugar dick.  What could we ever learn from history?  :dunno:

Sugar Dick

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Re: Dividend tax to rise to 44.6%
« Reply #8 on: April 20, 2010, 11:46:18 AM »
To answer your second question, don't know and don't care.  I won't be getting any dividends in the 1980's any time soon so I don't have much incentive to look that up for you.  Also, Ronald Reagan died a while ago.

Great points, sugar dick.  What could we ever learn from history?  :dunno:

reducing cap gains rates is good for the economy  :dunno:

If you don't know what you're talking about don't post

Offline john "teach me how to" dougie

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Re: Dividend tax to rise to 44.6%
« Reply #9 on: April 20, 2010, 03:38:11 PM »
To answer your second question, don't know and don't care.  I won't be getting any dividends in the 1980's any time soon so I don't have much incentive to look that up for you.  Also, Ronald Reagan died a while ago.

Great points, sugar dick.  What could we ever learn from history?  :dunno:

That you can't spend your way out of a recession.

Offline AzCat

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Re: Dividend tax to rise to 44.6%
« Reply #10 on: April 21, 2010, 08:18:06 PM »
To answer your second question, don't know and don't care.  I won't be getting any dividends in the 1980's any time soon so I don't have much incentive to look that up for you.  Also, Ronald Reagan died a while ago.

Great points, sugar dick.  What could we ever learn from history?  :dunno:

That you can't spend your way out of a recession.

That you can't tax your way to prosperity.
That government isn't a solution to the problem, it is the problem.
Etc.