Looking for Income? Get It Before the Fiscal Cliff
From Profit Confidential
November 29, 2012 - 11:26am
The fiscal cliff is currently dictating the trading action in the stock market as we near December and the year’s end. The worry is that if the Bush-era tax cuts are allowed to dissipate, the end result would likely be a significant jump in taxes, including those on dividends. The prevailing dividends tax of 15.0% is extremely accommodative to income seekers, but under the fiscal cliff, we could see the tax on dividends for the highest tax bracket surge to 39.6%. For dividend investors, this means a massive jump in taxes in 2013.
Let’s take a look. Say you earn $100.00 in dividends and you are in the top tax bracket. (Want to know the top stocks for the rich? Read “QE3 and the Rich: What Stocks Will Benefit?”) You would pay $15.00 in dividend taxes now, but if you receive the $100.00 dividend on or after January 1, you’d pay a whopping $39.60. The increase would see U.S. divide...
Continue reading this article »
Share This Article: