mj01323 Wrote:
Dec 08, 2012 11:28 AM
The biggest change will be taxing qualified dividends at the ordinary tax rate, not the current long-term capital gain rate of 15%. Increasing the 35% rate to 39.6% is not a big deal. Increasing the long-term capital gain rate to 20% in itself is not that bad. It's the rate on dividends, income that has already been taxed at a 35% corporate rate. Add the Obamacare tax of 3.8% and figure out how much of dividend income goes to the federal government. It looks to me like the federal government will get 78% of the corporate income used to pay dividends. Add state income tax and there is not much left. How do you spell redistribution?