November 21, 2012 |
Companies from Wynn Resorts Ltd. to IDT Corp. are paying special dividends at four times the pace of last year, helping investors stay a step ahead of the tax man with rates poised to jump in 2013. From the end of September to mid-November, 59 companies in the Russell 3000 stock index declared a onetime cash payment to shareholders, up from about 15 in the year-earlier period, according to data compiled by Bloomberg. More than a dozen said they acted because of a pending dividend-tax increase.
November 21, 2012 |
Looking for a hideout from tax hikes? There is tremendous uncertainty and worry surrounding the expiration of the so-called President George W. Bush tax cuts on capital gains and dividend income. Income investors, in particular, are concerned about potential increases in the basic dividend rate and President Obama's 3.8 percent Medicare surcharge for some higher-income households. Paid together, these proposed rates have the potential to push total dividend taxes up to as high as 43.4 percent from the current 15 percent.
November 20, 2012 |
NEW YORK - If Washington allows tax cuts to expire at the end of the year, taxes on dividends will nearly triple for the highest-paid Americans. That's led some experts to warn of a looming collapse for popular dividend-paying stocks. When Uncle Sam charges a higher tax on something, they reason, it drives people away. But judging by the country's previous experience taxing dividends, that may not be how things play out. "Historically, big changes in taxes just have no effect on dividend stocks," says James Morrow, a fund manager at Fidelity Investments.
November 14, 2012 |
Now that the presidential election is over, Wall Street and financial advisers are telling clients that taxes are going up. We rounded up a sampling of opinions about potential tax hikes now up for debate in Congress, and possible fallout from the budget-cutting, tax-raising consequences of the fiscal cliff, if it happens. Ratings agencies may downgrade U.S. debt for a second time should Congress disagree about the debt ceiling and decide not to address long-term fiscal deficits, notes Barbara Novick, BlackRock Inc.'s vice chair and head of government relations.
April 19, 2004 |
President Bush's proposal to end the "double taxation" of dividends was "simple, moral and innocent," Donald Luskin wrote a year ago on the National Review's Web site. Weeping into his keyboard, Luskin likened the plan to the idealistic James Stewart character in "Mr. Smith Goes to Washington. " The proposal, he said, "got corrupted, chewed up and spit out by the U.S. Senate. " Over at the Heritage Foundation, Daniel J. Mitchell was predicting that Americans would reject the "politics of hate-and-envy" and go for the Bush plan.
January 5, 2004
Help working families When are the Republicans going to get over their superiority complex? They seem to always believe that if the wealthiest people in this country get big tax breaks, they will create jobs for all the "little" people. Does the American public actually buy into that? Federal tax cuts do not create jobs but always create higher local taxes. If the Republicans in Congress really want to help American families, the tax cuts should be for working families, families that have both parents working to make ends meet.
June 3, 2003 |
The centerpiece of President Bush's sweeping economic-stimulus package is a reduction in the taxes investors pay on their stock dividends, a measure aimed at making stocks attractive investments again. But experts are divided over whether the new tax-cut bill that Bush signed last week will encourage corporations to increase their dividend payments or, for many more, even start paying them at all. Donald Straszheim, a financial adviser in Los Angeles, is a proponent of the dividend tax cut, which will be in effect for the next six years.
May 18, 2003 |
In the United States, if you're wealthy or a land-rich farmer and you want your heirs to avoid paying taxes on your estate, plan to die in 2010 - not before, and certainly not after. That's the only year when you can avoid estate taxes entirely, according to the 2001 tax-cut law in a provision once derided by Sen. Rick Santorum (R., Pa.) as "pro-suicide. " It is a bit of legislative gimmickry designed to squeeze a big tax cut into a small budget box. Now, as Congress fashions a new 10-year tax-reduction plan, it's using the same kind of legerdemain.
May 9, 2003 |
The Republican-controlled Congress is well on its way to elevating President Bush into the GOP pantheon of tax-cutting presidents. Acting with virtually no Democratic help, GOP lawmakers are set to push a 10-year, $550 billion tax-cut plan through the House today, one day after the Senate Finance Committee approved a $434 billion version that includes $20 billion in aid to states. The GOP tax cutters, prodded relentlessly by the White House, carved success with a nip here and a tuck there from Bush's original $726 billion tax-cut proposal.
May 8, 2003 |
Senate Republicans reached a deal yesterday on more than $430 billion in tax cuts and aid to states over 10 years that salvaged much of President Bush's proposal while securing the crucial vote of a GOP moderate. Eager to avoid an embarrassing defeat for Bush, Republicans grudgingly accepted a plan to reduce the taxes that individuals pay on corporate dividends to zero for the first $500, with up to 20 percent of dividends exempt beyond $500. Bush wanted the tax eliminated altogether, and that was the centerpiece of his proposal aimed at stimulating the economy.