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That averages out to $4000/return or a probable savings of more than $1000 for someone in the 27% tax bracket.

It's instructive to look more closely at the numbers.

From an article on moneycentral: a small group does take in a big chunk of the nation's dividend income. Only 6.5% of all the taxpayers declaring dividend income claim more than 41% of all dividend income declared.

Combining Ira's numbers with these, 2.2 million taxpayers (6.5% of 34 million returns showing dividend income) are reporting almost $65 billion in dividends (41% of $142 billion). So for these fat cats, it averages out to almost $30,000/return. These lucky folks are likely to be in the 35% and 38.6% brackets - let's be generous and say 36.5%. That works out to be more like $11,000 apiece!

Of course, the Republican response to this will be that these guys - the wealthiest taxpayers - are now paying the bulk of the taxes, so they should get the bulk of the relief - and there's a certain amount of logic to that argument.

I don't know what the answer is. Maybe they should consider reverting to the way it was not too many years ago, when the first $200 in dividend income was excused from taxpayers. That throws a smallish bone to a lot of taxpayers.

Lorenzo

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