Posted on 05/10/2010 8:09:02 AM PDT by Slyscribe
With tax rates on track to surge next year, it may be time to cash out of dividend-paying stocks, reminds accountant Joe Kristan over at Going Concern. Taxpayers owning C corporation stock might also want to take a bullet, figuratively speaking, this year. That’s because the tax rate on dividends will either leap or soar in 2011. The increase in the dividend rate is a consequence of the scheduled expiration of the 2001 Bush tax cuts after this year.
(Excerpt) Read more at blogs.investors.com ...
The tax rate on dividens for individual investors is supposed to go from 15% to about 42% in 2013. Seniors and baby boomers getting screwed again.
49% of baby boomers voted for Obama and 47% of seniors voted for him. They win the Darwin award for stupid along with young people.
“Soylent Green! It’s People!”
Chuck Heston as Det Thorn in Soylent Green
There goes my early retirement gotta work another 50 yrs.
Time for me to move into municipal bonds.
I hear you get great rates on Greek bonds these days.
This only affects those evil rich people like you and Lovie.
This is part of OBama’s agenda. Hurt private business and drive more capital into propping up local and state govts to pay SEIU union govt workers more money.
All designed to destroy private business.
All designed to destroy private business.
Pray for Gods Divine intervention on Obama and his administration and pray for America.
It’s unsustainable, obviously,
so we won’t have to wait long for it to collapse.
“All designed to destroy private business.”
####
Which ultimately means, with the only TRUE constructive wealth generators shut down, no tax revenues.
Atlas Shrugged.
How many times have you pasted this paragraph into posts? 47% of seniors did not vote for Obama.
How many times do I have to correct you?
A new tax on elderly widows.
A lot more than 47% of seniors voted for obama!
I live next to a senior only development and my precinct voting is there and 90% voted for obama and the Congressional district votes 65% Republican.
Wrong.
The tax rate on adoption will more than double, as it were, with the credit going from around $12,300 down to only $5,000.
Americans 60 and over - 47% voted for Obama.
“Soylent Green! It’s People!”
49% of baby boomers 45 to 59 years old voted for Obama.
Baby Boomers will be soylent green - sooner then they realize.
“Soylent Green - they are killing the old people”
Keep being sheep people and pay for cable & sat TV for Obama. The TV news media is 100% behind Obama and you keep em in business. Your number will be called soon.
“Soylent Green! It’s people!”
Soy
Source?
The double-taxation of dividends makes this even worse than it sounds.
If a corporation makes a $1M profit and wants to distribute it to shareholders as dividends, it first has to pay income taxes on it at corporate rates. So in a state like CA, the Corp will have paid $350K to Fed, $100K to CA, and pass the remaining $550K to shareholders, who will then pay 52% (42% Fed + 10% CA) income tax on it, or $286K. Leaving just $264K after-tax income for the shareholders.
So the total income tax rate paid on that $1M corporate profit was 73.6% !
Corporations will simply stop paying dividends and shareholders will have to hope that results in higher share prices that can be realized as cap gains at a lower tax rate.
This is by design. They want you to buy muni bonds to keep subsidizing SEIU and other govt union workers. They want to destroy private companies.
The stupid public paying for cable and sat TV keep the Dems in power. TV is 100% behind him.
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