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Investors, Brace Yourselves for Tax Hikes
Thestreet.com ^ | Sep 26, 2010 | William Ehart

Posted on 09/26/2010 3:26:25 PM PDT by Jet Jaguar

As if battered investors needed more abuse, they are in for a rude awakening at the end of the year.

SNIP

The most dramatic change will be in the taxation of dividends. Who doesn't love big, stable dividend-paying companies in these uncertain times? Well, you may have to adjust your portfolio as the tax on dividends will rise from the current Bush-era maximum capital gains rate of 15% to a Clinton-era maximum income-tax rate of 39.6%. While Obama had proposed a 20% tax on dividends as an alternative, that now appears unlikely given budget rules enacted by Congress.

Speaking of capital gains, that attractive 15% maximum rate will rise to 20%, so if you have big gains, you may want to sell your high-dividend stocks this year and buy different stocks with less tax impact.

The story is the same for income tax rates. The Bush brackets of 10%, 15%, 25%, 28%, 33% and 35% will revert back to a schedule of 15%, 28%, 31%, 36% and 39.6%.

The so-called marriage penalty and the phase-outs for itemized deductions and personal exemptions for wealthy taxpayers will also return.

(Excerpt) Read more at thestreet.com ...


TOPICS: Business/Economy; Government
KEYWORDS: capitalgains; democrat; democrats; economy; epicfail; impeachobama; investors; obama; obamaeconomy; taxes

1 posted on 09/26/2010 3:26:28 PM PDT by Jet Jaguar
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To: Jet Jaguar

Just a note: “dividends” from life insurance are not taxable. The courts have ruled they are return of over payment of premiums...not “a piece of the Rock”


2 posted on 09/26/2010 3:30:12 PM PDT by LiteKeeper ("Psalm 109:8")
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To: Jet Jaguar
The ultimate goal of a kleptocracy is to, in effect, own the people. All that you make and own is at the sufferance of the state. The state may, in its generosity, let you keep some small pittance. This is why the November elections are only a small first step in turning back the tide of dependency and subjugation that is crippling the country.
3 posted on 09/26/2010 3:39:50 PM PDT by Truth29
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To: Jet Jaguar

Oh, that ought to stimulate the economy real good!


4 posted on 09/26/2010 3:41:27 PM PDT by elpinta (Jer. 10:23)
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To: Jet Jaguar

The Democrats’ motto has always been “tax and spend”, and these are the largest tax hikes in history.


5 posted on 09/26/2010 3:42:41 PM PDT by snowsislander (In this election year, please ask your candidates if they support repeal of the 1968 GCA.)
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To: Jet Jaguar

Expect a modest uptick in federal tax receipts in 4Q10 as everyone dumps their stocks, followed by a corresponding plunge in 1Q11.


6 posted on 09/26/2010 3:46:28 PM PDT by Gideon7
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To: snowsislander

Except this time it is spend and tax with nothing to show for the spending.


7 posted on 09/26/2010 3:50:12 PM PDT by Moonman62 (Half of all Americans are above average.)
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To: Jet Jaguar

Convert trad. IRAs to Roth?


8 posted on 09/26/2010 3:50:41 PM PDT by Paladin2
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To: Paladin2

If it has a SS number attached to it, no matter what it is, will eventually be toast, is just a matter of time.


9 posted on 09/26/2010 3:52:11 PM PDT by elpinta (Jer. 10:23)
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To: Jet Jaguar

Stossel had an intriguing program on FOX today....


10 posted on 09/26/2010 3:57:57 PM PDT by Silentgypsy
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To: Moonman62
Well, what the rats have previously shown for their spending isn't worth the money- an ever-expanding underclass of generations dependent on welfare, increased single mother homes, increased bureaucracies, money to Africa to teach men to wash their privates, etc. I'd just as soon they'd burned the money, than what they have to show for the use of it.
11 posted on 09/26/2010 4:09:58 PM PDT by mrsmel
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To: Jet Jaguar

Most of the “little” people don’t think this will hurt them because they don’t think they’re being paid any dividends.

Folks, we all must accept that at least 42% (Probably much more) of the people in this country think anyone who makes over $100,000 a year is the enemy. And they don’t think it’s fair that they don’t make that much.


12 posted on 09/26/2010 4:13:26 PM PDT by Terry Mross (Never again will I hold my nose and vote for a rino.)
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To: Silentgypsy

Stossel had an intriguing program on FOX today.... regarding...????????????????????????????????

Well, since I didn’t get to see it, it looks like I’m not very intrigued, or enlightened.

PS, Your screen name is most appropriate, LOL.


13 posted on 09/26/2010 4:16:43 PM PDT by wita
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To: wita

Silly wita! People like Donald Trump spoke about how Americans minimize or avoid taxes. Don’t you research? :)


14 posted on 09/26/2010 4:21:52 PM PDT by Silentgypsy
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To: Jet Jaguar

Well consider this.

2011 is likely to take a big economic dive because of these tax increases - while at the same time Republicans gain control of at least the house in congress. Democrats will turn around and say the blame for the 2011 down turn is the Republicans taking the house.

In other words, the Democrats have affectively booby trapped the coming year and are going to blame the results on the Republicans taking the house when in fact nothing could be further from the truth.

I’m going to try to make this my last post for awhile... By putting it in writing here maybe I’ll be able to stick to it...


15 posted on 09/26/2010 4:24:21 PM PDT by DB
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To: Silentgypsy

Or maybe you don’t have considerable investments? :)


16 posted on 09/26/2010 4:27:36 PM PDT by Silentgypsy
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To: Paladin2
Convert trad. IRAs to Roth?

If you have FAITH that the "ROTH IRA" will NOT become a demonized term referring to the "Winners of Life's Lottery" who have unjustly profited from tax loopholes???

After all, what percentage of the voting populace even own such wealth? /s

17 posted on 09/26/2010 4:28:42 PM PDT by ExSES (the "bottom-line")
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To: Silentgypsy

Don’t you research? :)

Not donald trump. :)


18 posted on 09/26/2010 4:34:44 PM PDT by wita
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To: wita

Good luck w/your sizeable investments. :)


19 posted on 09/26/2010 4:36:54 PM PDT by Silentgypsy
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To: DB
 
That's the sort of thing I've noticed too - minefields from here on out, with the democraps ready to chortle and lay blame everywhere but where it belongs. They've got things so tangled up right now, anyone who tries to do anything to disarm the booby-traps are gonna be damned if they do-damned if they don't - only if we let'em get away with it. It's going to take people with a real plan, and no fear at doing it, to have a chance at reversing anything. 
 
 

20 posted on 09/26/2010 4:40:04 PM PDT by lapsus calami (What's that stink? Code Pink ! ! And their buddy Murtha, too!)
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To: Terry Mross
Most of the “little” people don’t think this will hurt them because they don’t think they’re being paid any dividends.

Boy are a lot of people in for a surprise.

I personally have modest investments for which the current dividend tax rate saves me approximately two to ten dollars. The big difference this change is going to make is that many (most?) of my employers clients get significant amounts of their income from dividends. Thus this change to tax law shows potential to adversely affect my income.

21 posted on 09/26/2010 5:21:00 PM PDT by Fraxinus (My opinion, worth what you paid.)
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To: Jet Jaguar

Let’s see...government employees and other wealthy government beneficiaries pay higher taxes, which taxes go to the government and back to them. ...circular genius! What a country!

Those Underpaid Government Workers
http://www.freerepublic.com/focus/f-news/2596091/posts


22 posted on 09/26/2010 5:46:04 PM PDT by familyop (cbt. engr. (cbt), NG, '89-' 96, Duncan Hunter or no-vote.)
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To: Jet Jaguar

You left out the 0%, -10%, -20% brackets that the Obama supporters are in.


23 posted on 09/26/2010 8:00:00 PM PDT by GregoryFul
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To: Paladin2
Convert trad. IRAs to Roth?

I think it is a bad idea for most people if it kicks them into the 25% bracket or higher. If they have state high state income taxes like California, it is terrible idea.

You really have to do your homework...

24 posted on 09/27/2010 5:29:11 AM PDT by EVO X
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