No. of Recommendations: 13
No one seems to mention that dividends in your 410k or IRA are not taxed until you withdraw them, and then they are taxed as income. If you invest in REITs, the company pays no tax so long as they pay out 90% of their taxable income as dividends. This avoids the double tax problem. But the dividends are taxed as income. Lastly dividends from most preferred stock are unqualified and are taxed as income. We do all of this, are very happy with our dividends, and wonder what tall the fuss is.

I strongly believe that unearned income should be taxed at the income tax level, and this includes almost all "long term" capital gains from stocks. After the IPO or Secondary Offering, investing in the stocks does nothing for the company and is just another form of gambling. I don't understand why they shouldn't be taxed as income. To tax these at less than income, is just a gift from the government - welfare for the wealthy.

IPOs and Secondary offerings are another case as companies might be able to benefit from these. Such stock might be taxed as a lower rate, IMHO.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.