90.9 WBUR - Boston's NPR news station
Top Stories:
PLEDGE NOW
Here and Now with Robin Young and Jeremy Hobson
Public radio's live
midday news program
With sponsorship from
Mathworks - Accelerating the pace of engineering and science
Accelerating the pace
of engineering and science
Tuesday, December 4, 2012

What Raising Taxes, Avoiding Fiscal Cliff Mean For Average Investors

 

President Barack Obama, flanked by National Governors Association (NGA) Chairman, Delaware Gov. Jack Martell, and NGA Vice Chair, Oklahoma Gov. Mary Fallin, at the White House on Tuesday. President Obama and House Speaker John Boehner will push their positions on the fiscal cliff in separate meetings Tuesday with some of the nation’s governors. (Charles Dharapak/AP)

Oracle is the latest company to pay dividend income early to shareholders because of fear that tax rates may rise next year.

Most dividend income is currently taxed at 15 percent. If the Bush era tax cuts expire, dividend income would count as ordinary income and be taxed at the rate the earner is paying on other income.

While that has led to concerns for some investors, Roberton Williams of the Tax Policy Center told NPR that possible higher rates on investment income will not have a significant effect on most Americans.

Eighty percent of Americans report no income from dividends or long term capital gains, and currently more than half of the tax benefit on investment income goes to the top one-tenth of the top one percent of earners.

Guest:


Please follow our community rules when engaging in comment discussion on this site.
Spotlight

We now have a digital bookshelf! Explore all our books coverage or browse by genre.

Robin and Jeremy

Robin Young and Jeremy Hobson host Here & Now, a live two-hour production of NPR and WBUR Boston.

February 26 34 Comments

That Political Bumper Sticker Could Cost You Your Job

In most states in the country, labor laws will not protect you from getting fired over a political bumper sticker.

February 26 2 Comments

Remote Mexican Villages Build Their Own Cell Networks

Thanks to cheaper technology, community organizers and computer hackers are bypassing the big cell companies.

February 25 Comment

DJ Sessions: New Music From Nashville

For this week's DJ Session, Marcia Campbell shares songs from Teea Goans, Reba McEntire, Chris Stapleton and Earls of Leicester.

February 25 105 Comments

Feminist Gamer Withdraws From PAX East, Citing Safety Concerns

Video game developer Brianna Wu discusses the threats against her and her role as a feminist leader amid the Gamergate controversy.