The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Why getting rid of dividend tax is a Bad Ide Date:  1/6/2003  7:01 PM
Author:  irasmilo Number:  62879 of 123001

...Dividends are so low nowadays that the tax exemption isn't going to
dramatically help many individuals, particularly since so many people
own stock in tax-deferred devices like IRA's and 401-K's (more on this

I disagree. In 2000, (the most recent year for which data are published) there was $142billion of dividend income reported on 34 million individual income tax returns. That averages out to $4000/return or a probable savings of more than $1000 for someone in the 27% tax bracket. If you consider all returns, there were 129 million returns or about $1100 of dividend income per return. This is not a small number.