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.
We are only just getting dividends back up to a decent level and this ignoramus wants to tax them at nearly triple the rate? The funny part is that they think that only people making $200K or more will be affected by this stupidity.
Companies don't make dividend decisions based on people making more than some magic "not paying their fair share" number. They make it on the total amount of people receiving dividends. So if dividends are taxed at 44% then companies will just sink them into stock buybacks and cease paying them out. It seems like the kind of plan a person who owns nearly no stocks (Obama the king of the Profit and Earnings Ratio) would come up with.
Actually, the people this hoses are retirees who are using income mutual funds to augment their social security money. They get like 0.5% interest from the bank, treasury bonds pay hardly anything, and now Obama wants to indirectly steal their dividend money as well?
It almost seems like a reckless plan to get all seniors on Social Security (and Social Secuity only) so that they can be easily manipulated. So it comes down to vote for the Dems you retirees or we will starve you to death. Luckily this budget can be safely ignored. I was praising the damn thing too just a little while ago. I guess Obama just can't resist the impulse to hike taxes anyway he can get away with it.