The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Why getting rid of dividend tax is a Bad Ide||Date: 1/6/2003 8:09 PM|
|Author: foobarista||Number: 62880 of 121565|
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.
But you are making the communistic assumption of flat income
distribution :) In any case, in this sense it is actually more fair to
have corps have the tax deduction, so that the actual dividend is
likely to be bigger (which benefits everyone, including people who have
dividends accruing in a 401K or whatever) as opposed to pushing the tax
benefit to individuals but leaving the actual amounts the same.
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