President Obama's 2013 budget is the gift that keeps on giving—to government. One buried surprise is his proposal to triple the tax rate on corporate dividends which, believe it or not, is higher than in his previous budgets.
Want to collect those higher taxes, Barack? You might, then, want to stop downsizing the Navy. You're going to need it if you're going to pry those dollars out of the hands of America's wealthy former citizens who have moved to the Caymans.
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By the way, I'd love to hear our president square that plan with this one:
Obama to propose lowering corporate tax rate to 28 percent
What, he wants to lessen the burden on corporations but triple it for those who might earn dividends from them?
The Obama years will be characterized by historians as being years of profound chaos brought about by executive ignorance. Those years will certainly include 2012.
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What Obama is too stupid to grasp: From the article, "Obama's Dividend Assault":
"Keep in mind that dividends are paid to shareholders only after the corporation pays taxes on its profits. So assuming a maximum 35% corporate tax rate and a 44.8% dividend tax, the total tax on corporate earnings passed through as dividends would be 64.1%. "
Who wouldn't want to get a piece of that action by risking their entire worldly savings on an investment in a corporation with an effective tax rate - if all goes well - like that?
Singapore, here our money comes!
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Obama could learn the lesson the Brits are learning right now. He won't but he could:
50% tax rate 'failing to boost revenues’Fools.
The Treasury received £10.35 billion in income tax payments from those paying by self-assessment last month, a drop of £509 million compared with January 2011. Most other taxes produced higher revenues over the same period.
Senior sources said that the first official figures indicated that there had been “manoeuvring” by well-off Britons to avoid the new higher rate. The figures will add to pressure on the Coalition to drop the levy amid fears it is forcing entrepreneurs to relocate abroad. [link]