- Sep 19, 2011
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President Obama's 2013 budget 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%.
Review & Outlook: Obama's Dividend Assault - WSJ.com
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%.
Review & Outlook: Obama's Dividend Assault - WSJ.com