Here we go again. Obama can’t get his story straight. Remember he ran on not sticking it to the middle class, only the evil rich, when it came to taxes. Well, think about this one. We know that taxes are going up, but because of Obama’s tax plans, investment dividends very likely will decrease.
According to a Wall Street Journal editorial, the tax rate on dividends will increase by almost three hundred percent. Seems like the Senate budget Committee raised the tax on dividends from its current 15% to almost 40% for the 2011 fiscal year. That’s a 164 percent increase, a far shot from the 20 percent increase he promised in 2008. But then, that was 2008, this is 2010. If you add the Health Care surcharge of 3.8 percent on investment dividends, that puts the total tax rate on dividends at about 44 percent. Let’s see. Add to that the 35 percent tax on profits businesses are already paying, and the tax comes to around sixty cents on each dollar of dividends received by stockholders.
According to the Journal, “You can expect fewer businesses either to offer or increase dividend payouts, which means less dividend revenue for the government…The millions of Americans who receive dividend income – most of them not rich – need to begin adjusting their investment strategy accordingly.”
The effect of these tax increases can be devastating to retired Americans whose retirement income is largely dependent upon investments. Not only will the proposed tax increases directly effect their income because of decreased dividends, but falling stock prices will also decrease the net worth of all investors, including non-retired investors who depend on those dividends for retirement income.
The effect of these tax increases will also devastate business. Without people willing to invest in businesses, large and small, business expansion will slow. The idea of business is to make a profit. To raise the capital necessary to expand existing businesses and create new businesses, investors as well look toward profit. These new tax regulations may well decrease investment capital which will slow down or stop business expansion.
This latest fiasco by the Obama administration is but another step to destroy the economy of the United States. Obama has made changes since his election, but can we survive them? With 48 percent of the population being supported by so-called entitlements, government-speak for on the public dole or welfare, with the public debt approaching 12.9 trillion dollars, can we afford to place greater burdens on business and those who who invest in it?
Wake up, folks. We are losing it all in the uncontrolled rush to Socialism.
According to a Wall Street Journal editorial, the tax rate on dividends will increase by almost three hundred percent. Seems like the Senate budget Committee raised the tax on dividends from its current 15% to almost 40% for the 2011 fiscal year. That’s a 164 percent increase, a far shot from the 20 percent increase he promised in 2008. But then, that was 2008, this is 2010. If you add the Health Care surcharge of 3.8 percent on investment dividends, that puts the total tax rate on dividends at about 44 percent. Let’s see. Add to that the 35 percent tax on profits businesses are already paying, and the tax comes to around sixty cents on each dollar of dividends received by stockholders.
According to the Journal, “You can expect fewer businesses either to offer or increase dividend payouts, which means less dividend revenue for the government…The millions of Americans who receive dividend income – most of them not rich – need to begin adjusting their investment strategy accordingly.”
The effect of these tax increases can be devastating to retired Americans whose retirement income is largely dependent upon investments. Not only will the proposed tax increases directly effect their income because of decreased dividends, but falling stock prices will also decrease the net worth of all investors, including non-retired investors who depend on those dividends for retirement income.
The effect of these tax increases will also devastate business. Without people willing to invest in businesses, large and small, business expansion will slow. The idea of business is to make a profit. To raise the capital necessary to expand existing businesses and create new businesses, investors as well look toward profit. These new tax regulations may well decrease investment capital which will slow down or stop business expansion.
This latest fiasco by the Obama administration is but another step to destroy the economy of the United States. Obama has made changes since his election, but can we survive them? With 48 percent of the population being supported by so-called entitlements, government-speak for on the public dole or welfare, with the public debt approaching 12.9 trillion dollars, can we afford to place greater burdens on business and those who who invest in it?
Wake up, folks. We are losing it all in the uncontrolled rush to Socialism.
No comments:
Post a Comment