The Obama Dividend Plan

March/09/2012 16:53PM
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Retail stock assets are being withdrawn. That term retail, to the big money boys, means you and I. We are the saps who go into the stock market when it’s about to go down and go out when it’s about to go up. It suggests that we’ve had it with the 2% or less we’ve gotten for the past 10 years vs. the risk. Statistics show we aren’t a part of the recent rise in the market. Our investment class keeps moving our assets to the safer bond market.

Last year, one of the best investments in equities was stocks paying dividends. Perhaps one reason we see money from individual investors exiting the market is the great wisdom of our president. Small investors may be hedging against his reelection.

His plan, as announced, would rape those who buy dividend paying investments. Those who make over $200,000 in 2013 will pay 39.6% on dividends. Then add the 3.8% investment tax surcharge in ObamaCare and the dividend tax rate will be 44.8%. Dividends that are paid to shareholders after the corporation pays taxes on its profits. So, assume a 35% corporate tax rate and a 44.8% dividend tax, the total tax on corporate earnings passed through as dividends would be 64.1%.

But, it won’t only affect the so-called filthy rich. History has shown when taxes on dividends go up, corporations stop paying dividends. Not just to those filthy rich, but those filthy poor who have 401K’s through their beloved unions. Those inept teachers we must continue to protect. And, of course those policemen and firemen who keep us safe. And, my mailman. The conductor on AMTRAK who has no tickets to punch. And, that gorilla at the Bureau of Motor Vehicles.

Let’s see, we can’t get any interest on our savings with ObamaEconomics, we are finally seeing our stock prices get close to where they were 6 years ago, and the man who wants to keep his job as president wants to pull the rug on that.

Well folks, just remember, rich or poor, a vote for Obama in November means the end of dividends as a source of asset appreciation and perhaps a slight drop in your large cap stock value. Just another little dividend from Obama.

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