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Topic: Dividend tax

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	Who Really Benefits from Dividend Tax Relief?
		For example, corporations could be allowed to deduct dividend payments from their taxes (just as they do with interest payments), or individual investors could be given tax credits on their personal tax returns using the "imputation credit" method.
		Since dividend tax relief means that firms are more likely to increase their dividend payments, the benefit of this type of tax relief will also accrue to individuals holding equities in retirement accounts even though the benefit will not immediately show up on their tax returns.
		Dividend tax relief may be criticized as providing a tax break for "the wealthy," but the IRS's own data clearly suggest otherwise.
	www.heritage.org /Research/Taxes/CDA03-02.cfm (4008 words)

	Tax and Duty Types - Dividend Withholding Tax (DWT)
		Irish individual shareholders are taxable on the gross dividend at their marginal rate of tax but are entitled to a credit for the tax withheld by the company paying the dividend.
		Where a dividend payment or other distribution is made directly to an exempt shareholder by the company or by an 'authorised withholding agent', the shareholder is required to provide evidence of entitlement to the exemption, in the prescribed form, to the company or the 'authorised withholding agent'.
		a certificate of tax residence from the tax authorities of the country in which the individual is resident for tax purposes.
	www.revenue.ie /revguide/dividendwitholdingtax.htm (700 words)

	Dividend tax must go
		Yet, in the last Budget, Mr Sinha chose to double the tax on distributed dividends from 10 per cent to 20 per cent on the specious plea that there should be parity in the tax treatment of income by way of dividend and income by way of interest.
		The tax on distributed dividends has affected the sentiments of investors because, to the extent of that tax, the surplus available with the company is reduced.
		On the one hand, equity-oriented funds are exempted from the tax on distributed income but, on the other, the joint-stock companies on whom the mutual funds depend for earnings on their equities are saddled with a heavy burden of a 20 per cent tax on the distributed profits.
	www.blonnet.com /2001/02/10/stories/041064t1.htm (1597 words)

	Dividend tax on firms likely to go
		The finance ministry is considering doing away with the dividend tax currently levied on companies, instead of slashing the corporate tax rate to 30 per cent in Budget 2004-05.
		The sources said a reduction in the corporate tax rate from the existing 36.75 per cent to 30 per cent would not lead to a rise in receipts, unless the plethora of exemptions were done away with.
		The report of the task force on direct taxes headed by Vijay Kelkar, adviser to the finance minister, has suggested elimination of the dividend tax and reduction of the corporate tax rate to 30 per cent to integrate the tax system.
	www.rediff.com /money/2004/jun/07tax.htm (450 words)

	Perspective: Impact of US dividend tax proposal (Site not responding. Last check: 2007-10-08)
		A proposal intended to ensure that taxes on dividends are not paid twice, by both corporations and shareholders, is at the center of the Bush Administration’s economic stimulus package.
		Currently, tax on earnings distributed by a corporation to shareholders in the form of dividends may be paid twice: first by the corporation at a rate as high as 35% and again by shareholders at a rate as high as 38.6%.
		Under current tax rules, unless the recipient of restricted stock makes a section 83(b) election, choosing to treat the stock as taxable at grant, dividends on unvested restricted stock are treated as compensation and, thus, are deductible by the corporation and taxable to the recipient.
	www.mercerhr.com /referencecontent.jhtml?idContent=1083870 (1594 words)

	Dividend tax - Wikipedia, the free encyclopedia
		Some who want to keep the dividend tax as-is claim it is unfair to tax income generated through active work at a higher rate than income generated through less active means or that companies may not have paid their full share of income tax.
		Dividends received by low income individuals are taxed at a five percent rate until December 31, 2007 and become fully untaxed in 2008.
		In the Netherlands there is a tax of 1.2 % per year on the value of the share, regardless of the dividend, as part of the flat tax on savings and investments.
	en.wikipedia.org /wiki/Dividend_tax (1030 words)

	Tax Policy Center \| A Project of the Urban Institute & the Brookings Institution
		Top four statutory tax rates would be reduced from 27, 30, 35, and 38.6 percent to 25, 28, 33, and 35 percent, respectively.
		The beginning of the 15-percent tax bracket is increased from $6,000 to $7,000 for singles in 2003, and from $12,000 to $14,000 in 2003.
		Note that the increase in the portion of the child tax credit that is refundable (i.e., which helps low-income working families), scheduled to take effect in 2005, is not accelerated.
	www.taxpolicycenter.org /commentary/admin_provisions.cfm (897 words)

	The Dividend Tax Break: Taxing Logic, by Dean Baker, January 2003
		The rationale for this tax cut is that it would limit the “double taxation” of income from dividends—the argument being that this income is taxed once at the corporate level and then a second time at the individual level.
		Furthermore, if proponents of the tax break were actually interested in avoiding double taxation, rather than just lowering tax rates for wealthy individuals, they would couple their proposals for a cut in the dividend tax rate with an increase in the corporate tax rate.
		In addition, the proposed tax break actually does little for the vast majority of families who are subject to the alleged double taxation of dividends, since they hold their stock primarily in retirement accounts.
	www.cepr.net /publications/tax_2003_01.htm (1813 words)

	Dividend Tax Rates, Dividend Tax - CallWriter's MONEY newsLETTER
		The Jobs and Growth Tax Relief Reconciliation Act of 2003 reduced the rate of tax on both long-term capital gains and dividend income earned by individuals to a maximum rate of 15%, instead of the far higher ordinary income tax rates, which can be as high as 35%.
		If this is true, then dividend strippers are already paying for the dividend they are about to receive; unless of course they buy the stock far enough in advance of the ex-dividend date that the dividend has not yet been priced in.
		Those of you who hold dividend stocks long-term and who like to hedge or sell covered calls need to be familiar with these rules, at least on stocks that pay a high enough dividend that the 15% dividends tax rate is meaningful.
	www.callwriter.com /newsletter/dividend-tax-rates.htm (2181 words)

	Taxing Issues: Playing the Dividend Tax Cut
		As the tax laws currently stand, corporate earnings are subject to two levels of taxation — one at the corporate and one at the shareholder level.
		Corporations that retain fully taxed earnings would not be required to pay these earnings as dividends in order for their shareholders to take advantage of the proposed exclusion.
		The effect of a deemed dividend is to increase shareholders' tax basis in their stock and therefore reduce the capital gains upon a sale, as well as to lower a corporation's EDA by an identical amount.
	registeredrep.com /mag/finance_playing_dividend_tax/index.html (707 words)

	Dividend - Wikipedia, the free encyclopedia
		Property dividends or dividends in specie (Latin for "in kind") (rare) are those paid out in form of assets from the issuing corporation or another corporation, such as a subsidiary corporation.
		The "ex dividend" date is set by the exchange where the stock is traded, several days (usually two) before the date of record, so that all trades made on previous dates can be properly settled and the shareholder list on the date of record will accurately reflect the current owners.
		When dividends are paid, shareholders in many countries suffer from double taxation of those dividends: the company pays income tax to the government when it earns any income, and then when the dividend is paid, the individual shareholder pays income tax on the dividend payment.
	en.wikipedia.org /wiki/Dividend (1615 words)

	Tax tip: Reporting your investment earnings
		And every investor who benefits from the new lower capital gains and dividend tax rates will have to pay for their tax savings by running extra computations to figure out their precise IRS bill.
		Taxpayers who are able to report dividend payments directly on their 1040 or 1040A returns also need to note that there are two lines for these earnings.
		For most taxpayers, these qualified amounts are taxed at 15 percent, rather than regular income tax rates that go as high as 35 percent.
	www.bankrate.com /brm/itax/tips/20030206a1.asp (1062 words)

	The Capital Gains and Dividend Tax Cuts and The Economy, 3/27/06 (Site not responding. Last check: 2007-10-08)
		This is the case in part because the initial benefits of capital gains tax cuts (and of dividend tax cuts as well) are directed in large part toward investments that have already taken place.
		If tax cuts are crucial to economic growth, then with at least one major tax cut a year for four straight years, the current recovery should stand out brightly in comparison to previous recoveries.
		Some tax cut proponents also suggest that CBO and the Joint Committee on Taxation systematically miss the positive impact of capital gains tax cuts on revenues and that lawmakers would be justified in ignoring the official cost estimates and assuming that extending the tax cut will pay for itself.
	www.cbpp.org /3-27-06tax.htm (4630 words)

	President Bush's Dividend Exclusion Proposal - April, 2003 Hot Topics
		Under newly proposed dividend exclusion legislation, Public and private corporations would be permitted to distribute nontaxable dividends to shareholders to the extent those dividends are paid out of income previously taxed at the corporate level.
		To ensure that distributions and retentions of previously taxed earnings are treated similarly, shareholders will be permitted to increase their basis in their shares to reflect that the retained earnings have already been taxed at the corporate level.
		The accumulated earnings tax and personal holding company tax will be repealed because they are of diminished importance in a system that does not impose a shareholder level of tax on dividends.
	www.taxprophet.com /hot_topic/April03.shtml (835 words)

	PROPOSED ENHANCEMENT TO DIVIDEND TAX CREDIT
		Under the personal income tax collection agreement with the federal government, Ontario is required to use the same definition of income as the federal government, including the federally determined gross-up for dividends.
		Eligible dividends would generally include dividends paid after 2005 by corporations that are not Canadian-controlled private corporations (CCPCs) that are resident in Canada and subject to the general corporate income tax rate.
		In addition, CCPCs would be able to pay eligible dividends to the extent that their non-investment income is subject to tax at the general corporate income tax rate.
	www.fin.gov.on.ca /english/media/2006/bk08-dtc.html (634 words)

	Capital Gains and Dividend Tax Cuts: Data Make Clear That High-Income Households Benefit The Most, 1/30/06 (Site not responding. Last check: 2007-10-08)
		Another statistical sleight of hand used to portray the benefits of the capital gains and dividend tax cuts as being widespread is to point to the large numbers of middle-income households that receive this type of investment income.
		Tax Policy Center data for 2005 indicate that the bulk of income from dividends and capital gains flows to high-income households.
		Recent analyses by the Tax Foundation have focused on the benefits of the dividends and capital gains tax cuts for the elderly, and have noted that the likelihood of having capital gains and dividend income increases with age.
	www.cbpp.org /1-30-06tax2.htm (1971 words)

	Fool.com: The Truth About the Dividend Tax [Rule Maker] January 8, 2003
		Dividend taxation is one of those petty issues that goes unnoticed because people only understand one side of it, and corporations, on the whole, have been pretty loath to send shareholders precious capital.
		Ending the double taxation of dividends is part of a $600 billion economic stimulus package sponsored by President Bush to assist the foundering U.S. economy.
		Dividends are a logical target for tax cuts because doing so corrects a historical imbalance -- an imbalance affecting the 52% of American households that own shares in public companies.
	www.fool.com /portfolios/rulemaker/2003/rulemaker030108.htm (1490 words)

	Ontario announces higher dividend tax credit, following Ottawa's lead
		In May, the Conservative federal government confirmed dividend tax reductions promised by the former Liberal government, and announced the elimination of capital gains on securities donated to charity.
		Such tax credits are intended to offset tax that has already been paid on income by the corporation that issues the dividends, effectively preventing a double-taxing of the income at the individual level.
		Ontario's new tax credit will be phased in over five years, starting at 5.13 per cent in 2006 and growing to 7.7 per cent by 2010.
	www.cbc.ca /cp/business/060803/b080321.html (297 words)

	Spinsanity - Countering rhetoric with reason
		The explanation for this is that the tax cut reduces income tax revenues as a percentage of overall federal tax revenues, increasing the proportion of federal taxes coming from taxes that fall more heavily on lower-income Americans, such as excise and payroll taxes.
		A family of four with an income of $40,000 would see their federal income taxes fall from $1,178 to $45 per year." As I have demonstrated before, however, these figures are carefully constructed to provide a misleading portrait of what a typical taxpayer near the middle of the national income distribution could expect to receive.
		The Urban-Brookings Tax Policy Center, a center-left economic think tank, calculates that under Bush's proposal a family in the middle one-fifth of the income distribution could expect to see an average of $256 cut from their taxes in 2003.
	www.spinsanity.org /post.html?2003_01_26_archive.html (2440 words)

	Making Sense of the Dividend-Tax Cut
		Dividends on borrowed stock will not be eligible for the reduced rate, and you're also out of luck if you're lending the stock.
		So if a taxpayer has income from bonds, REITs or dividends that aren't eligible for the reduced rate, the IRS will allow a deduction in the amount of that income, and permit the taxpayer to apply the reduced tax rate on dividends that do qualify.
		Now, under the new tax law, you must hold the stock for more than 60 days during the 120-day period that begins 60 days before the ex-dividend date (the first trading day after the eligibility date).
	www.thestreet.com /funds/beverlygoodman/10099254.html (428 words)

	Dividend Tax Credit (Site not responding. Last check: 2007-10-08)
		Susan Smith has a marginal income tax rate of 25% and is located in Alberta, where the provincial dividend tax credit is 6.4%.
		Therefore, in all her taxes payable on her dividend is $16.46 (78.13-41.67-20).
		Dividend tax credits are implemented in an attempt to offset double taxing, since dividends are paid to shareholders with a corporation's after-tax profit and the dividends received by shareholders are also taxed.
	www.investopedia.com /terms/d/dividendtaxcredit.asp (345 words)

	Stephen Moore on the Dividend Tax Cut on NRO Financial
		he word on Capitol Hill is that the two chief Republican tax writers, Bill Thomas in the House and Chuck Grassley in the Senate, are ready to chop the president's dividend tax cut in half.
		The worst move for the Republicans would be to capitulate to the left arm of the party and eviscerate the tax cut.
		If president Bush’s tax plan increases economic growth by just 1 percentage point a year, and if federal expenses are cutback to the rate of inflation, we will have a balanced budget by the year 2006 and a $100 billion surplus.
	www.nationalreview.com /moore/moore040103.asp (934 words)

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