Posts Tagged ‘dividends’

Hiking Dividend Taxes to Pay for a Corporate Rate Cut

Finland’s government recently announced a broad fiscal reform package that cuts corporate tax rates—financed in part by higher taxes on corporate dividends. The plan makes sense for Finland and is worth considering here at home. Finland will lower the corporate rate to 20 percent in 2014, down from the current rate of 24.5 percent (and […]

Paying 2013 Dividends in 2012 May Save on Taxes but Not for Everyone

Regardless of the outcome of the fiscal cliff negotiations, taxes on dividends will be higher in 2013 than in 2012. As a result, companies can save some shareholders plenty of taxes by paying some of next year’s dividends this year. But not every shareholder will benefit from this presumed largess. While the very wealthy will […]

Marginal Tax Rates Matter More than Average Tax Rates

Each year when I complete my federal income tax return, Turbotax tells me my average tax rate—how much tax I owe measured as a percentage of my total income. But it would be better if I learned my marginal tax rate or MTR—the percentage tax that I would pay on an additional dollar of income. […]

Senate Democrats Would Keep Dividend Taxes Low, But Why?

Senate Democrats, who will vote this week to allow most of the 2001/2003 tax cuts to expire for high-income households, are likely to make an exception for capital gains and dividends. Under their proposal even top bracket taxpayers would pay a maximum rate on this investment income of 20 percent in 2013 (plus an additional […]

Obama’s Buffett Rule: Keep Your Eye on Capital Gains

President Obama didn’t quite get around to saying so when he rolled out his latest deficit reduction plan on Monday, but his Buffett Rule—that no one making more than $1 million should pay a lower tax rate than those in the middle-class—is mostly about investment income. On average, high income people do pay significantly higher tax rates than […]

Will Romney’s Modest Capital Gains Tax Cut Hurt With the GOP?

Welcome to the season of jobs plans. GOP presidential hopeful Jon Huntsman offered his last week. President Obama will propose his before Thursday night’s football game.  But today is GOP presidential hopeful Mitt Romney’s day. And at least when it comes to tax policy, he veers a bit to the left of the new Republican orthodoxy.  To be […]