Dividend investing for retirement Message Board

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Strategies & Market Trends : Dividend investing for retirement

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To: Kip S who wrote (33261)	12/14/2020 11:49:11 AM
From: TigerPaw	Read Replies (1) of 34328

I do not endorse a doubling of the dividends/capital gains rate from 20% to 40% at a certain income level. While the tax rate is a step function, I believe it to be true that the first million is still taxed at the lower rate, and only money in excess of a million warrants the higher rate. As your income rises above a million the effective tax rate is a blend of the two rates and rises as a smooth function that approaches the top rate only after several million dollars in income. It is not as if you earn $1 and suddenly all your taxes double.

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