And that's only for starters. The recent health-care bill includes a 3.8% surcharge on all investment income, including dividends, beginning in 2013. This would nearly triple the top dividend rate to 43.4% in Mr. Obama's four years as President. We suppose the White House would call this another great victory for income equality.
Dividends which are payouts from business earnings are already taxed once at the corporate rate of 35%. The individual dividend tax is a second levy on that same income, and at a rate of 43.4% would take the total tax on each dollar paid in dividends to something like 60 cents.
You can expect fewer businesses either to offer or increase dividend payouts, which means less dividend revenue for the government.
It is very likely that the Senate budget resolution dividend tax rate of 39.6% will become law next year. The millions of Americans who receive dividend income—most of them not rich— need to begin adjusting their investment strategy accordingly.
There is a price to pay for electing a far left liberal fascist President of the United States. Everyone in America will be paying the price for decades to come.