"Obama's Dividend Assault - A plan to triple the tax rate would hurt all shareholders" ALL? --- I know MANY shareholders who do not qualify for Obama & company's idea of "rich"...Is Obama really out to preserve UN-rich "middle"?
"Seldom has there been a clearer example of a policy that is supposed to soak the rich but will drench almost all American families."
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. Add in the planned phase-out of deductions and exemptions, and the rate hits 41%. Then add the 3.8% investment tax surcharge in ObamaCare, and the new dividend tax rate in 2013 would be 44.8%—nearly three times today's 15% rate.
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%.
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