Thursday, May 13, 2010

Tax Rate On Dividends Set To Surge 164% After 2010

Subject: txt pubmny bdd -
With tax rates on track to surge next year, it may be time to cash out of dividend-paying stocks [which are investments, financing someone's activity], reminds accountant Joe Kristan over at Going Concern.


The increase in the dividend rate is a consequence of the scheduled expiration of the 2001 Bush tax cuts after this year. Prior to the Bush administration, dividends were taxed as ordinary income. As dividends are distributions of corporate income already taxed at a corporate rate as high as 35%, that meant a combined rate of 57.75%.

Keep in mind that in 2013, ObamaCare will slap a 3.8% Medicare tax on investment income on wealthy Americans. So federal dividend tax rates could soar as much as 189% in the near future...

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