OBAMA triples dividend tax?

[Brad Gile]

Wall Street Journal editorial:
http://online.wsj.com/article/SB1000...TTopStories&gt

Who would get hurt? IRS data show that retirees and near-retirees who depend on dividend income would be hit especially hard. Almost three of four dividend payments go to those over the age of 55, and more than half go to those older than 65, according to IRS data.

But all American shareholders would lose. Higher dividend and capital gains taxes make stocks less valuable. A share of stock is worth the discounted present value of the future earnings stream after taxes. Stock prices would fall over time to adjust to the new after-tax rate of return. And if investors become convinced later this year that dividend and capital gains taxes are going way up on January 1, some investors are likely to sell shares ahead of paying these higher rates.

This shit was buried. Nice going, thugs.

[gomer_tree]

Obama hates old people.

[ElDucky]

Anyone with money to invest is rich.

[SirVLCIV]

Who would get hurt? IRS data show that retirees and near-retirees who depend on dividend income would be hit especially hard. Almost three of four dividend payments go to those over the age of 55, and more than half go to those older than 65, according to IRS data.

Something tells me it's not 'retirees' that would be hurt but 'upper class retirees' (and Obama's a Democrat. Upper class = bad (unless you're a political donor)). And using a simple metric like X out of Y dividend payments is going to skew the discussion to the ultra-wealthy (since they likely represent the significant majority of dividends). I'd prefer a metric like 'over X% of 55+ receive Y% of their income from dividends'.

I don't agree (at all) with punitive taxes on dividends, but the WSJ isn't being honest in its assessment, I'd bet.

[Ron Weasley]

Yeah. Obama hates old people that don't rely on government to hand them someone else's money.

[SirVLCIV]

Originally Posted by Ron Weasley

Yeah. Obama hates old people that don't rely on government to hand them someone else's money.

Sure. That's a productive way to think about things. [/red]

[Ron Weasley]

Originally Posted by SirVLCIV

Sure. That's a productive way to think about things. [/red]

Ever since I saw that movie about learning to play a band instrument using the think method, I've chosen to be productive by actual accomplishment.

[SirVLCIV]

Originally Posted by Ron Weasley

Ever since I saw that movie about learning to play a band instrument using the think method, I've chosen to be productive by actual accomplishment.

Yeah, thinking before speaking is overrated. [/red]

[Ron Weasley]

Originally Posted by SirVLCIV

Yeah, thinking before speaking is overrated. [/red]

You're successfully demonstrated the reading comprehension and cognitive abilities I've come to expect from you.

[Incredible Hulctuary]

Keep in mind that dividends are paid to shareholders only after the corporation pays taxes on its profits. So assuming a maximum 35% corporate tax rate and a 44.8% dividend tax, the total tax on corporate earnings passed through as dividends would be 64.1%.

Conveniently forgetting that he proposed dropping the top corporate tax rate to 28%, not leaving it at 35%. And the vast majority of loopholes and breaks would remain, keeping the average effective rate below 20%.

Mr. Obama is proposing to raise the dividend tax rate to the higher personal income tax rate of 39.6% that will kick in next year.

A rate which would apply only to people in the highest tax bracket -- over $388K of taxable income.

Add in the planned phase-out of deductions and exemptions, and the rate hits 41%.

What? The 39.6% bracket (i.e. the top rate pre-Bush) didn't rely on deductions and exemptions to bring it down from 41% to 39.6%.