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Subject:  New Tax on Retirees proposed Date:  7/10/2009  12:28 PM
Author:  notehound Number:  15236 of 19817

Partial repost from Retire Early Campfire -

RE: Proposed Surcharge on Interest and Dividend Income

FYI to those living on interest income, dividends and capital gains, a new tax is proposed to pay for healthcare:

A surcharge on interest income (as well as dividends and capital gains of all types) would make investors unhappy with yields near 0% on certain types of government debt. Based on this possible (and I think very likely) source for additional funds to pay for national health care, I expect that investors will be dissatisfied with extremely low yields on Treasury Obligations or on long-term debt.

Of particular concern is the proposal that interest & dividend income and short-term capital gains be taxed at rates HIGHER THAN ANY OTHER form of income. I don't see any pos