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Taxes on Dividends

• Dividends, withholding, offshore funds

  [Investment News, September 28, 2008] Washington might both stop this dividend activity and diminish the dollars in offshore-fee deferrals by allowing tax-exempt entities to invest in domestic limited partnerships or limited liability corporations and eliminate the need for them to go offshore. Some transactions may have been executed poorly, which is why further guidance would be appreciated. Millions of dollars belonging to U.S. pensioners hang in the balance.

• On Dividend Taxes, It's a Post-Partisan Race

  [American Enterprise Institute, September 6th, 2008] Barack Obama is often described as a post-partisan politician who transcends traditional ideological divides. Is it true?

• Romney's Tax Free Savings Plan A Boon For Middle Class

  [Townhall.com, October 8, 2007] Republican presidential candidate Mitt Romney's tax-free savings plan would change the tax rate on interest, dividends, and capital gains to zero percent.

• Assault on the Investor Class

  [Wall Street Journal, May 7, 2007] The Congressional tax committees have set their sights on the private equity market as a source for new tax revenues.

• Federal Individual Income Tax: Exemptions and Treatment of Dividends, 1913-2006

  [Tax Foundation, December 12, 2006] Chart of exemptions and treatment of dividends from 1913 to 2006.

• Tax As You Go

  [Wall Street Journal, January 5, 2007] The new Democratic version of a pay-as-you go (paygo) budget rules for Congress are supposed to look like prudent budgeting practice. But in reality, it is a budget trapdoor, designed not to control expenditures but to make it easier to raise taxes while blocking future tax cuts.

• Seniors Benefit from Reduced Dividend Tax Rate

  [Tax Foundation, December 6, 2005] Older Americans are even more reliant on dividend income than capital gains. Among taxpayers between age 65 and 74, a remarkable 51.3 percent claim dividend income while 50.4 percent above age 75 have dividend income.

• Make the Dividend and Capital Gains Tax Rates Permanent

  [Heritage Foundation, February 16, 2006] A Heritage backgrounder argues that extending low tax rates on capital gains and dividends will continue to help fuel economic growth.

• Protecting Seniors from Double Taxation

  [Heritage Foundation, March 5, 2003] Removing or reducing double taxation will lead to more jobs and higher living standards and will make America more competitive in the global economy.

• Dividend Policy and the 2003 Tax Cut: Preliminary Evidence

  [Heritage Foundation, October 25, 2004] Two recent National Bureau of Economic Research (NBER) papers begin the formal study of whether the 2003 dividend tax cuts affected corporate dividend policy.

• New study Finds Dividends Up After Tax Cuts

  [Cato Institute, October 11, 2004] Cato Institute research shows that the May 2003 tax cut, designed to encourage investment and breathe vitality into the stock market, has worked precisely as its supporters expected.

• Benefits of the Bush Dividend Tax Cut

  [NCPA Brief Analysis #483, August 27, 2004] Dividend tax relief was exactly what this country needed to pull itself out of the recession. The positive effects of the Bush tax cuts are just beginning to be seen.

• Putting a Face on Dividend-Earning Taxpayers

  [Tax Foundation, January 6, 2003] "In years past, the tax treatment of dividends has varied from fully exempt to fully taxable, and they've been fully taxable since 1985."

• Do Dividend Payments Respond to Taxes?

  [National Bureau of Economic Research, June 2004) Two economists found a sharp and significant surge in dividend distributions following the 2003 tax cuts.

• Tax Cuts Boost Business Investment

  [Heritage Foundation, February 3, 2004] The 2003 tax cuts resulted in a boom in business investment that has contributed substantially to strong GDP growth.

• Who Really Benefits from Dividend Tax Relief?

  [Heritage Foundation, January 7, 2003] Contrary to common perceptions, such double taxation of dividends affects nearly all Americans, not just a select few.

• Glenn R. Hubbard and The Dividends Tax

  [NCPA, January 13, 2003] Glenn Hubbard proved that taxes on dividends are in fact capitalized in stock prices. Thus it is reasonable to assume that if dividend taxes are removed, share prices will rise.

• An Overlooked Benefit of Dividend Tax Relief

  [USA Today, January 22, 2003] Dividends could turn executives into long-term shareholders with less incentive to use short-term accounting tricks just to move the stock price.

• Dividends as a Social Good

  [Wall Street Journal, January 29, 2003] Eliminating double taxation of dividends would contribute to the nation's financial and social welfare in many ways.

• Don't Disrepect Dividends

  [Forbes, May 4, 2004] Why is it that dividend stocks are still treated by investors as the Rodney Dangerfields of the market?

• Lower Taxes Boost Stock Market

  [National Bureau of Economic Research, May 4, 2004] Over time, dividends paid out by corporations will surge by 24 percent; the reduction of taxes on future dividends will increase the value of the stock market by $690 billion.

• Wall Street Shocks Ripple Through the Economy

  [USA Today, January 7, 2003] What happens on Wall Street impacts the entire nation, economists point out.