The Humble Libertarian

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Monday, March 26, 2012

How to Handle the Coming Dividend Tax Hike

With expiring tax breaks, the tax on dividend income will jump to 43.4%, the maximum tax rate of 39.6% plus the 3.8% Obamacare tax.
Unless Congress takes action, the top tax rate for the highest earners on most dividends, currently 15%, is set to jump to a whopping 43.4% next year. That is a maximum income-tax rate of 39.6% -- since dividends will once again be taxed as regular income -- plus a 3.8% tax on investment income as part of the health-care overhaul passed in 2009.
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Smart Money