Replies

All of this is fine.

However the dividend cut is a clear case of finding a tax cut for only the richest of the rich.

The President lied and said 60% of Americans would benefit there is no way. Nearly all Americans own stock through 401K, IRA or similar retirement accounts. All are currently tax free. High Tech companies do not pay dividends. Most companies that do pay dividends are old money families like the Kennedy's. It is unlikely that more that 5% of the population of America will benefit by this tax cut.

Most unfortunate is it does make sense to have a dividend tax cut. Currently dividends are taxed at a rate of 40% or so. Cut this corporate rate by giving corporations a tax break on dividends. This really would encourage more companies to issue dividends. This would also help all invested in 401k type accounts. Then the 60% might be true.

"The President lied and said 60% of Americans would benefit there is no way. Nearly all Americans own stock through 401K, IRA or similar retirement accounts. All are currently tax free. High Tech companies do not pay dividends. Most companies that do pay dividends are old money families like the Kennedy's. It is unlikely that more that 5% of the population of America will benefit by this tax cut. "

Man you're way out there !

92 Million working Americans will get a tax break,
Kennedy isn't a company
Get up to date on the President's package !

You're probably a rat plant but incase you aren't you need to ready a few articles on this site to get educated ?

However the dividend cut is a clear case of finding a tax cut for only the richest of the rich.

Richest of the rich? What about the people trying to live off the dividends to support themselves after they retire. Do they get no help at all until they qualify for welfare?

Or, is it better for the country to have them not invest all their working careers and merely spend and to heck with trying to provide for their old age.

I agree with President Bush - this is class warfare. When people pay the most in taxes, they should be considered at least equal when tax cuts are given. Or, is it the goal to continually increase their burden year after year to carry more and more of America while being considered unworthy of any tax decrease?

This plays into the democrat plan of wealth redistribution. They plan on getting more and more of the tax burden shifted to the rich and away from the continual "lower", "poorer" ones. Then, the wealthy forfeit their wealth to the government and all other Americans while being ignored in any say about the running of the country and its economic policies. Soon, the wealthy are carrying the whole burden without the numbers to vote out the policies that steal their wealth.

I don't think that's quite right. Pre-tax dollars invested into a 401k/IRA's are tax deferred, not tax free.

Some 401k's are invested into funds. The funds contain a broad spectrum of stocks in different companies. Some of these stocks will pay dividends. (There are more companies that pay dividends than you might think).

I'm not sure who is right re: the number of people benefiting.
I am quite confident that more people than not, who own stocks in some form or another, are going to benefit.

Guess I"m in that minute 5% of yours and I'm not even rich--wow what an exclusive club I'm in. Hey buddy, dividend reinvestment. Lot's of us are doing it outside of IRAs. It makes investing in stocks more accessible for the average joe since you can put in as little as 10.00 at a time. Many blue collars are doing this to boot, many are surprised to find this is an option. The only reason people don't invest is they don't know--plain and simple.

Wow! You know where to get TAX FREE 401Ks and IRAs? Do tell. Where might the rest the the world get these? I can only find the tax deferred versions, and after checking my dictionary, I see "deferred" does not mean "free."

By the way, my apparently very rich parents, lived off their stock dividends after working all their lives as a steel mill helper and secretary. Good thing that under your plan, folks like them would pay the price for their life of excess. They had central heating, two cars and (gasp!) even a gas powered lawn mower. I'm still trying to get over the shame.

You're doing good, comrade. Keep those neurons sparking.

So we may presume you think it's fine that income dollars on which federal taxes have already been paid should be taxed again? If so, we have a philosophic difference. Even if your off hand estimate of "5 %" is correct, what do you personally have against those fifteen million of your fellow citizens?

Besides, it seems to me the main purpose of this is to encourage investment in American equity and at the same time increase spendable dollars for a lot of seniors who, contrary to your estimate, do rely on dividends for a part of their income. The plan makes sense from both a financial and political point of view and, speaking as a conservative Republican, that makes it a win-win.

You're blowing smoke through your hat.

The elimination of the dividend tax will change the way business is done. Your complaint is based on the past, the future will be different because of the cut.

Not mentioned in the fray is small family business where dividends can't be paid because of confiscatory taxation. In my mind, there will be major stimulus from small business owners cutting loose the money now retained by the tax code.

Why is it a bad thing to cut taxes on corporations? Those corporations happen to be employers.

I TOTALLY support the Bush proposal. I don't give a r@t's ass if it stimulates the economy or not (but it will, BTW). The tax code is IMMORAL, too much tax money is is used to fund immoral/ineffective/wasteful government programs. The less money going into the treasury is just fine with me.

Excuse me? First of all, let's get this much straight -- according to any socialist/communist (like you, apparently) anyone with a non-government job is considered rich.

I can tell you that I make a fair penny in my field, but living in NY I lose 40% of it before I even get a paycheck, thanks to taxes.

A dividend tax cut last year would have saved me a few humndred dollars. Hardly enough to get the leather upholstery in the new Beemer this year. (sarcasm off).

Where did you get your numbers from?