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Forum Post: why are stock dividends free from taxation?

Posted 13 years ago on Nov. 1, 2011, 11:27 p.m. EST by gestopomilly (497)
This content is user submitted and not an official statement

thats trillions of dollars that no one is paying any tax on. that could help fix things a little. start taxing stock dividends

72 Comments

72 Comments


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[-] 1 points by MattLHolck (16833) from San Diego, CA 13 years ago

Forum Post: Dont fall for the Robin Hood Tax! Think again...

Posted Nov. 1, 2011, 12:18 a.m. EST (1 hour ago) by octopodes This content is user submitted and not an official statement

Hi. I have seen a few oppupy cities saying that they support the Robin Hood Tax, and it concerns me. This tax would tax unjust banking practices and use that $ at a slush fund for bailing out banks. So in other words it just lets them carry on with their irresponsible banking & investment practices and the gov't would get to pat themselves on the back for looking like they are doing something about it, when in fact tehy are just enabling it to happen. No! What we need is to stop these bad practices from happening in the first place! Don't let the gov't try to placate the movement with these deceiving tax systems. Just because it's called the Robin Hood Tax doesn't mean it has anything to do with taxing the rich and giving it to the poor. Take a closer look!!

http://occupywallst.org/forum/dont-fall-for-the-robin-hood-tax-think-again/

any thoughts on the "Robin Hood Tax" (i.e., in conjunction with occupy?) (User Submitted)

Posted Oct. 26, 2011, 4:58 p.m. EST (2 minutes ago) by Harlequin (Wakefield, England)

for those who don't already know what this is: http://robinhoodtax.org/

check it out. I support these people and I support what they're trying to do here in the UK. I really think both movements could benefit from each other.

[-] 1 points by Drekar (8) 13 years ago

They are taxed, but at a lower rate. The intent of the 15% tax on long-term (greater than one year) investment income was to encourage 1+ year investments. i.e. discourage short-term speculation.

It did not work.

That is all.

[-] 1 points by PincheCabron (131) 13 years ago

By the way, you can have your dividends reinvested, which postpones the tax penalty until you sell.

[-] 1 points by technoviking (484) 13 years ago

When a company makes a profit, it is taxes at the end of the year. If the company gives out these profits to the owners as dividends, it shouldn't be taxed again. Thats wrong!

[-] 1 points by gestopomilly (497) 13 years ago

that is not wrong how is that wrong.? the shareholder recieved income. it should be taxed. if i work at a company an they give me a bonus.. i have to pay tax on that income although it originated from company profit. how is that different?

[-] 1 points by technoviking (484) 13 years ago

The company does not pay taxes on wages or bonuses, only the employee does. Corporate taxes are applied to whatever the company earns (revenue) beyond costs, including rentals, loans, wages, purchasing inventory.

[-] 1 points by gestopomilly (497) 13 years ago

yes and how does that change the fact that a shareholder received income from dividends?

[-] 1 points by slinkeey (244) 13 years ago
[-] 1 points by gestopomilly (497) 13 years ago

Tax Increase Prevention and Reconciliation Act of 2005 ("TIPRA")

look it up! the law says 1% dont have to pay tax

[-] 1 points by slinkeey (244) 13 years ago

Maybe the 1% do not have to, but I am not the 1% so I pay them you idiot!!

It is all right you you damn fool!

http://www.irs.gov/taxtopics/tc404.html

[-] 1 points by gestopomilly (497) 13 years ago

exactly.. you pay cause you are the 99% thats what this whole thing is about they say we want thier money.. but we dont.. we want the taxes!

[-] 0 points by Frankie (733) 13 years ago

You're full of shit. It says nothing of the sort. It excludes the LOWEST tax brackets, not the top.

[-] 1 points by HitGirl (2263) 13 years ago

Don't take away my liberty to sit around the pool and collect tax-free money!

[-] 1 points by slinkeey (244) 13 years ago

Not everyone receiving dividends is rich! Any, yes people pay taxes on them!

[-] 1 points by HitGirl (2263) 13 years ago

No more than 15%. You can bet my 55 hour work week was taxed higher than that!

[-] 1 points by slinkeey (244) 13 years ago

That's not tax free..

[-] 1 points by HitGirl (2263) 13 years ago

No. It's tax injustice.

[-] 1 points by rin1 (123) 13 years ago

http://knockknockrevolution.tumblr.com/post/11573860774/why-occupy-wall-street-flyers - help convince people to become occupiers by using these talking points!

[-] 1 points by gestopomilly (497) 13 years ago

n 2003, President George W. Bush proposed to eliminate the U.S. dividend tax saying that "double taxation is bad for our economy and falls especially hard on retired people". He also argued that while "it's fair to tax a company's profits, it's not fair to double-tax by taxing the shareholder on the same profits."[3]

the Tax Increase Prevention and Reconciliation Act of 2005 ("TIPRA") extended the lower tax rate through 2010 and further cut the tax rate on qualified dividends to 0% for individuals in the 10% and 15% income tax brackets. On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. The legislation extends for two additional years the changes enacted to the taxation of dividends in the JGTRRA and TIPRA.[7]

[-] 1 points by ModestCapitalist (2342) 13 years ago

The current rate on Capital gains is 15 percent. Too damn low.

In a related story....

Bono is no humanitarian. In fact, he made millions from a shady deal with Live Nation in which other investors were made to subsidize his multi-million dollar stock options regardless of market value. The stock tanked, Bono unloaded, and those 'other' investors did in fact take giant losses in part, so the filthy disgusting rich multi-hundred-millionaire 'humanitarian' Bono would not have to. 

Ch'Ching! 

Just another rotten immoral disgusting trick perpetrated in the name of greed. 

I've said it many times and I will say it many more. 

There is no such thing as a multi-millionaire humanitarian.

[-] 0 points by puff6962 (4052) 13 years ago

They're not free from taxation. Remove this post. It's criminal to post something that you haven't researched.

[-] 1 points by gestopomilly (497) 13 years ago

no its true.. its legal tax evasion brought on by gutless politicians

[-] 0 points by puff6962 (4052) 13 years ago

No. I'm an investor. Hold a stock for less than 12 months....35% on your dividends and capital gains. Hold it for longer, the rates go down to 15%. The latter is too low, for sure. But, I and my accountant, have found no way around it.

[-] 1 points by gestopomilly (497) 13 years ago

i see. then theirs one way to fix things.. bring the rate of dividend tax equal to payroll tax.

[-] 0 points by puff6962 (4052) 13 years ago

Yes.

[-] 0 points by Frankie (733) 13 years ago

They're not. They're taxed at the corporate rate (more accurately they're some of what's left over after revenues are taxed) and taxed when paid at the cap gains rate when received by shareholders.

[-] 1 points by gestopomilly (497) 13 years ago

did you read the law? it is changed changed in 2005

[-] 0 points by Frankie (733) 13 years ago

Only for the lowest brackets. Why would you want to tax what's largely a bunch of old folks at the low end most of whom are relying on relatively petty amounts of dividends for retirement. That's why they were excluded to begin with.

[-] 1 points by gestopomilly (497) 13 years ago

listen.. when you own enough stock you get dividends. paid every day or month or year you want them. why do you want to tax the guy only making 50k and can barely feed his family? the old people have soc security

[-] 1 points by gagablogger (207) 13 years ago

For now they have social security.

[-] 0 points by Frankie (733) 13 years ago

What are you like 16? You're obviously have no clue what you're talking about.

No, you do not get dividends daily or whenever you want them regardless how many shares you own. A guy "only" making 50K isn't affected and, in fact, benefits by people supporting themselves through their own investments versus being more dependent on the government and taxes.

[-] 1 points by gestopomilly (497) 13 years ago

did you misread my post? they are trying to raise taxes. they are going to do this by increasing tax on the 50k guy. that is wrong when there is a 1% getting dividends that are NOT taxed. what is the big deal.. you get 50k in dividends for doing nothing- no tax.. you work and get 50k there is tax what is wrong with that picture?

[-] 0 points by Frankie (733) 13 years ago

You're wrong. The only exclusion is at the LOWEST tax brackets. Maybe you misunderstood what you were posting.

And stick to one thread btw. No need for two for the same subject.