Dividends, Tax Cuts, and the Fear/Disinformation game

[LiberalFighter]

Dividends, Tax Cuts, and the Fear/Disinformation game

The current 15% tax cap on dividend income is set to expire on December 31st of this year, and the folks over at DefendMyDividend.org want you to believe that if you are receiving income in the form of dividends, your financial future could be at stake! But, in fact, the current proposed budget increases the tax rate for dividend income only for households with incomes of over $250,000. So, if you're making less than a quarter of a million dollars a year, the proposed dividend income tax hike will have no effect on your finances.

DefendMyDividend seems to be targeting retirees: "Seniors and people reaching retirement age, in particular, represent a large portion of investors who own dividend-paying stocks. In fact, many seniors rely on dividends as a way to supplement their retirement income." But, as Citizens for Tax Justice, a 501 (c)(4) public interest research and advocacy organization devoted to fair taxation, points out, "Only seniors who are among the richest two percent of taxpayers would lose any of their dividend tax cuts under proposals being discussed. Arguments that corporations would reduce dividend payments in response are not credible because two-thirds of dividends are paid to tax-exempt entities." Contrary to what DefendMyDividend suggests, 98% of senior citizens would not actually see any increase in taxes. Furthermore, CTJ points out, "only one in four seniors receives even a dollar in taxable dividends."

So even if you happen to be one of the 1 out of 4 senior citizens that does receive dividends, you have to be making over $250,000 a year to be facing a tax increase on your dividends.

The writer also suggests watching the Heist movie