Alex Brill too Alan Viard write:
In the summertime of 2008, the Obama campaign's 2 peak economists proudly proclaimed that their candidate favored a dividend taxation charge per unit of measurement of xx percent, "lower than all merely 5 of the final 92 years." Well, that was then. In a sudden intermission from that travail opinion too the Administration's foremost iii budgets, President Obama is similar a shot calling for an all-in dividend taxation charge per unit of measurement of almost 45 percent, the highest charge per unit of measurement inwards 27 years. The president's about-face bodes sick for the economy.
While the president's proposal raises dividend taxation rates solely on high-income stockholders, Americans at all income levels volition experience the economical touching of the taxation hike. Higher dividend taxation volition impede the investment that fuels long-run growth, depress stock prices, too weaken incentives for adept corporate governance.
The president's proposal would permit the 2003 dividend taxation cutting to expire for high-income households at the cease of the year, pushing the peak dividend taxation charge per unit of measurement upwards from xv to 39.6 percent. That's a dramatic increase inwards its ain right. But, other provisions brand the truthful increase fifty-fifty larger. The president too wants to convey dorsum a provision phasing out deductions for high-income taxpayers, which volition stimulate each additional dollar of dividends to trigger 1.2 cents of extra taxes. And, foremost adjacent year, the president's wellness attention police volition impose an additional 3.8 pct taxation on dividends too other investment income of high-income households. Under the president's proposal, the peak all-in dividend taxation charge per unit of measurement volition live on 44.6 pct - almost triple today's xv pct rate.
Sumber http://gregmankiw.blogspot.com/
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