"President Obama's 2013 budget is the gift that keeps on giving—to government. One buried surprise is his proposal to triple the tax rate on corporate dividends, which believe it or not is higher than in his previous budgets.

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%."

http://online.wsj.com/article/SB10001424052970204880404577225493025537660.html

I'm sure that this will have no impact on anyone but the filthy rich!

"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."

Can you imagine how badly the market will tank as the entire country sells their stock to avoid the new rates?

Tax too high, kick-in too low.

Now if it was a 5% hike for income over a mil, i'd be in favor.

 

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So wait, we are counting entitlement taxes now?


I thought we were ignoring them so we can act like a bunch of people don't pay taxes.

 

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Problem: How to we energize the economy.
Obama's Solution: Take money away from it's people.

Classic case of Economics 1-0-dumb.

No corporation pays 35% so using that as a basis is ludicrous.

If those poor retirees are pulling in over $200,000 per year, they will likely be able to handle the tax increase on their dividends.

 

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The stock market should tank.. Its a complete joke and a way to rip people off.

People making over 200k a year can afford a tax hike on their interest and dividend earnings.

It makes more sense to lower corporate taxes and increase income taxes than to lower capital gains taxes for everyone.

 

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Once again. Until paired with a cap-and-balance amendment, this means nothing.

 

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