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.
London Telegraph
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]
2 comments:
Here's one the Roanoke Pravda-Democrat will "miss" from Drudge: "Tax revenue plunges in UK after 50% implemented". Lovers of taxes can't seem to get the message that raising taxes discourages positive economic activity. (No, that's not true. They REFUSE to get the message.)The story is from the Telegraph and simply reports that Brits are "maneuvering" to reduce their tax burden. Among the maneuvers as rational people would expect, is bugging out to a less taxing environment. Round up some tax evading American peasants and hang 'em. That's the ticket. If we hang enough of 'em they'll get the message. Vote for Obama-ayers.
OOps, I missed that last coupla paragraphs, Jerry. One would think our fellow peasants would've gotten the message by now. We know the Democrat Party of Death and their sycophant BM will studiously miss it. Raise those taxes, ramp up the spending of money we don't have. Happy days are here again. A Drachma in every pot....a riot in every city....an "Occupy" in every park....
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