Monday , 26 June 2017


U.S. May End Up Having the HIGHEST Dividend Tax Rates Among the G-10 Countries Next Year! Here's a Comparison

Hunkar goes on to say, in part:

The current 15% dividend tax rate in the U.S. is applicable to Qualified Dividends earned by all investors who fall in the 25% to 35% ordinary income tax range. Unless Congress takes action, however, the dividend tax rate is set to jump to:

  • the aforementioned 25% to 35% ordinary income tax rates on January 1, 2013, depending on one’s taxable income,
  • 39.6% for people in the highest income tax category and to
  • 44.6% for those in the highest income tax brackets when changes due to the Affordable Care Act and the re-introduction of the Pease limitation on itemized deductions are included.

Click to enlarge

Comparison of Top Dividend Tax Rates among G-10 Countries:

Source: Economic Research, Global Data Watch, October 5, 2012, J.P. Morgan

As shown in the chart above, the U.S. may end up having the highest dividend tax rates among the G-10 countries next year [if] the current dividend tax rates are not extended. Similar to the tax rate on dividends, the capital gains tax rate is also set to jump from the current 15% to 25% for those in the highest tax-brackets.

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The research note from J.P. Morgan notes that the additional impacts of the rise in tax rates [whammy #1] would be [that] companies may opt to:

  • implement more share buybacks (one of the worst unproductive strategies) [whammy #2] and
  • pay fewer dividends to shareholders [whammy #3].

*Source of original article: http://topforeignstocks.com/2012/10/24/comparing-top-dividend-tax-rates-in-g-10-countries/

Editor’s Note: The above post may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

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