Alex Brill in addition to Alan Viard write:
In the summertime of 2008, the Obama campaign's 2 elevation economists proudly proclaimed that their candidate favored a dividend taxation charge per unit of measurement of xx percent, "lower than all merely 5 of the terminal 92 years." Well, that was then. In a sudden intermission from that crusade opinion in addition to the Administration's initiatory of all 3 budgets, President Obama is immediately calling for an all-in dividend taxation charge per unit of measurement of almost 45 percent, the highest charge per unit of measurement inward 27 years. The president's about-face bodes sick for the economy.
While the president's proposal raises dividend taxation rates alone on high-income stockholders, Americans at all income levels volition experience the economical comport on of the taxation hike. Higher dividend taxation volition impede the investment that fuels long-run growth, depress stock prices, in addition to weaken incentives for expert corporate governance.
The president's proposal would let the 2003 dividend taxation cutting to expire for high-income households at the destination of the year, pushing the elevation dividend taxation charge per unit of measurement upward from xv to 39.6 percent. That's a dramatic increase inward its ain right. But, other provisions brand the truthful increase fifty-fifty larger. The president besides wants to select dorsum a provision phasing out deductions for high-income taxpayers, which volition get each additional dollar of dividends to trigger 1.2 cents of extra taxes. And, kickoff adjacent year, the president's wellness attention police pull volition impose an additional 3.8 pct taxation on dividends in addition to other investment income of high-income households. Under the president's proposal, the elevation all-in dividend taxation charge per unit of measurement volition last 44.6 pct - almost triple today's xv pct rate.Sumber https://gregmankiw.blogspot.com/
