The Impact of the New Dividend Tax | eDividendStocks
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Under the current tax rate, that investor will have $17,000 in after-tax gains. If that is allowed to come about, dividend return will then be taxed at investor’s borderline tax rate. The 15% dividend tax rate was implemented by former President Bush as part of his heart-grade tax cuts in 2003. Let’s take a look at how the new dividend tax will bump investor’s after-tax returns using the protracted-come to vend assumptions of a 12% report (composed of 5% from dividend receipts and 7% from cache worth gains). For some investors this could raid their tax rate from 15% all the way up to 39. Take for illustration an investor that has built a dividend portfolio that receives $20,000 in dividend return each year. Unfortunately, that tax cut was only fugitive and is now set to finish at end of this year....
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