Skip to comments.Investors, Brace Yourselves for Tax Hikes
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.
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 ...
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”
Oh, that ought to stimulate the economy real good!
The Democrats’ motto has always been “tax and spend”, and these are the largest tax hikes in history.
Expect a modest uptick in federal tax receipts in 4Q10 as everyone dumps their stocks, followed by a corresponding plunge in 1Q11.
Except this time it is spend and tax with nothing to show for the spending.
Convert trad. IRAs to Roth?
If it has a SS number attached to it, no matter what it is, will eventually be toast, is just a matter of time.
Stossel had an intriguing program on FOX today....
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.
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.
Silly wita! People like Donald Trump spoke about how Americans minimize or avoid taxes. Don’t you research? :)
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...
Or maybe you don’t have considerable investments? :)
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
Dont you research? :)
Not donald trump. :)
Good luck w/your sizeable investments. :)
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.
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
You left out the 0%, -10%, -20% brackets that the Obama supporters are in.
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...