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Review & Outlook: Obama’s Dividend Assault – WSJ.com

by on February 22, 2012

Unfreaking believable! Where’s the incentive for people to invest if the government’s going to confiscate 60% of profits??

President Obama’s 2013 budget is the gift that keeps on giving—to government. One buried surprise is his proposal to triple the tax rate on corporate dividends, which believe it or not is higher than in his previous budgets.

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.

Keep in mind that dividends are paid to shareholders only after the corporation pays taxes on its profits. So assuming a maximum 35% corporate tax rate and a 44.8% dividend tax, the total tax on corporate earnings passed through as dividends would be 64.1%.

http://online.wsj.com/article/SB10001424052970204880404577225493025537660.html?mod=WSJ_hp_LEFTTopStories

2 Comments
  1. guitargod permalink

    i think that was “Jesus” talking

  2. guitargod permalink

    just another piece of the takeover blueprint to suffocate incentive and shackle the free marketplace thus leveling the playing field – all teams equal – all teams controlled – alloutcomes predicted – comfy ruling class! “i think there comes a point where you’ve earned enough money hahaha” remember that commie gem…

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