Obama wants to raise the top tax rate on dividends to 44.6% – almost triple today’s 15% rate.
This seems like a rather short-sighted move in the class war currently being waged by Democrats. Super wealthy individuals tend to make their money off of capital gains rather than dividends. If you tax capital, the economy will recover more slowly. Retirees are far more likely to seek out stocks that pay dividends. Pension funds also invest in dividends. That’s a way to score political points with people who do not vote… threaten to tax old people, who do vote.
A prudent decision by Prudential?
If Obama wins the election, I’m sure he will be “flexible” to raise taxes as much as he wants.
The War on Investors.