I agree with Max that the post is political and inflammatory (my words, not Max's) and does not belong here. It is not my board to moderate, but that's my vote. It is also not particularly accurate. To wit:
**Dividends have had a mixed history of taxation in the U.S.: Often taxed as ordinary income and often offset with (usually quite modest) credits and exemptions, it was only with the tax cuts of 2003 that qualified dividends (only) have been taxed at the more favorable capital gains tax rates. Only since 2003.
**The Biden tax plan to treat capital gains and dividends as ordinary income (Thus with a maximum rate of approximately 40%) applies only to those earning (taxable income) in excess of $1 million.
reuters.com
Excerpt here (notice, from Penn Wharton Model):
Rich Prisinzano, director of policy analysis for the Penn Wharton Budget Model at the University of Pennsylvania ( here ), also confirmed to Reuters via email that Biden’s plan to get rid of the lower preferential rate on long-term capital gains and dividends is only for those with more than $1 million in annual taxable income.”
Personal Opinion/Analysis: For many years, my personal investment plan has centered around earning dividend income taxed at a favorable rate. I have benefited immensely from that tax break, though quite honestly, I never considered it "permanent," as it now seems to be viewed. In view of our record federal deficits, higher taxes at some point are quite likely. However, I do not endorse a doubling of the dividends/capital gains rate from 20% to 40% at a certain income level. If those rates were to be increased, my preference would be for them to be increase incrementally, say to 25% above a certain income level. Higher, if deemed necessary, at higher income levels, to, say 30%. I do not like an abrupt doubling.
None of these changes would affect me, as my income is well, well below the seven-figure level. If they are to be discussed here, however, I suggest they be portrayed accurately.
Finally, I would rather the "Dividend Investing for Retirement" board be focused on that topic. There are many, many political boards on SI where any opinion on political matters is welcomed. Let's not dilute the value here by introducing inflammatory, politicized rhetoric from ANY direction. As I said, though, not my call. |
