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Taxes on Dividends

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Is there any doubt taxes on dividends are too high in the U.S.? This from the Tax Foundation:

Another area of the U.S. tax code that has higher rates than most of the developed world is the taxation of dividends. When a corporation distributes its profits to U.S. shareholders as dividends, the shareholders are taxed at rates up to 28.6 percent on their dividend income. Taxes on dividends represent a second layer of taxation on corporate profits, which are first subject to corporate income taxes. The U.S. top tax rate on dividends is higher than that of 25 other developed countries, two of which do not tax dividend income at all.

The U.S. Places a High Tax Burden on Dividends

Top Marginal Tax Rate on Personal Dividend Income, by OECD Country (2015)

More interesting analysis from The Tax Foundation:

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E.J. Smith - Your Survival Guy

Preparing your investments and family for when disaster strikes.
E.J. Smith is the Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention. E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com. Sign up here to receive all the best content from Richardcyoung.com each week.