2016 Postmortem
Related: About this forumDefend My Dividend commercial
I keep seeing a commercial where a group called Defend My Dividend states there is soon going to be a doubling in dividend tax. It of course makes it sound as if this is going to hurt the middle class. I know a lot of people own some stock which pays dividends, but generally I think of dividends as impacting the rich more than the poor.
I went to the website and no surprise it didn't give me but one side. I did notice the following in the "about" area of the website
Can someone who understands what is going on help me on what is this really about? Why is this important to the Edison Electric Institute and the American Gas Association?
Fresh_Start
(11,330 posts)after that, full income tax rate.
russspeakeasy
(6,539 posts)you receive at least 98% of your income from dividends.
1StrongBlackMan
(31,849 posts)about this "protect my Dividends" discussion is that few, if any, understand that the taxation of dividends would be barely be noticed by most people that own dividend bearing stocks.
I have a couple such stocks and know how many one must own in order to reap appreciable income from them. My last year's dividend payments wouldn't buy a big-screen TV ... on sale.
rufus dog
(8,419 posts)my dividends would be enough to buy a decent programable remote.
Mojorabbit
(16,020 posts)from investments she made with my dad's life insurance when he passed and social security. Lots of elderly folks are following this topic closely. Big topic at the senior center where she goes. She is not wealthy by any means.
JoePhilly
(27,787 posts)Let's say she gets a measly $500 a month in interest and dividends. The investments needed to generate that $500 each month would be substantial.
I'd be curious to hear how much her monthly interest and dividends are against the total investment.
Mojorabbit
(16,020 posts)She does not get five hundred a month. Her money used to be in CDs but they pay almost nothing now.
JoePhilly
(27,787 posts)Which is what you said.
The rich can actually live off their dividends and interest.
And if your mom uses them to supplement her SS, her taxes won't go up because her income is too low.
In her later years, my grandmother lived off SS and some dividends and interest from CDs, and her taxable income was too low to tax.
The GOP uses the scare tactic about dividends to scare old people.
Mojorabbit
(16,020 posts)as it is a big topic of conversation and worry.
JoePhilly
(27,787 posts)All they hear are the lies and distortions on the TV.
LiberalFighter
(51,084 posts)What are the income groups that have direct investment and those that use 401k or IRA's?
How much in dividends do retirees receive on average? About 1/2 of mine has dividends and it amounts to just over $600 for the year so far. If it wasn't in a 401k I would probably have about $180 dividend tax at end of year.
So I wonder exactly what sort of income a retiree has that would cause this to be an issue? I would think anyone that is not wealthy would not be seriously impacted.
mnhtnbb
(31,402 posts)ProgressiveEconomist
(5,818 posts)investors in electric and gas power stocks are willing to pay.
Investors who faced higher marginal tax rates on dividends would only pay a lower multiple compared to what they pay under Bush tax rates. So stock prices would slump, the value of stock options utility executives own would plummet, it would become more expensive to finance plant maintenance and expansion, etc.
Raine1967
(11,589 posts)Edison Electric Institute
701 Pennsylvania Avenue, N.W.
Washington, D.C. 20004-2696
202-508-5000
The Edison Electric Institute (EEI) is the association of U.S. Shareholder-Owned Electric Companies. Our members serve 95 percent of the ultimate customers in the shareholder-owned segment of the industry, and represent approximately 70 percent of the U.S. electric power industry.
We also have more than 80 international electric companies as Affiliate Members, and more than 240 industry suppliers and related organizations as Associate Members.
Organized in 1933, EEI works closely with all of its members, representing their interests and advocating equitable policies in legislative and regulatory arenas.
EEI provides public policy leadership, critical industry data, strategic business intelligence, one-of-a-kind conferences and forums, and top-notch products and services.
http://www.eei.org/whoweare/abouteei/Pages/default.aspx
csziggy
(34,137 posts)A lot of pensions, annuities, retirement accounts invest in utilities. It's a pretty high and stable rate of return. If taxes on dividends go up, the utilities are worried that investments in their bonds will go down.
This is just general information gathered from accumulated knowledge of my personal investments, not from any specific knowledge of the utility companies' involvement in this ad campaign.