90.9 WBUR - Boston's NPR news station
Top Stories:
PLEDGE NOW
Here and Now with Robin Young
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.
  • http://twitter.com/seethrufaded elle smith

    I found that interview unclear and am more confused than ever. First, where does the $250K cutoff come from? Please clarify–if you make, say $150K a year and have say an income tax level in the high 20s, is it the case that your dividend/investment tax will NOT go up?
    Second, if you sell equities now in order to avoid a tax hike, you won’t put it under your pillow, you will re-buy equities. So that objection is meaningless.

Robin and Jeremy

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

August 20 Comment

James Foley Remembered For His ‘Extraordinary Courage’

U.S. officials have confirmed the authenticity of a video showing the beheading of the American journalist.

August 20 5 Comments

L.A. Moves To Arrest Fewer Misbehaving Students

The change in the school district's policy is the culmination of a long fight by judges, government officials, advocates and attorneys.

August 19 5 Comments

Abandoned Homes In Buffalo, N.Y. Selling For $1

Instead of tearing the homes down, city officials are selling them for $1, as part of the "Urban Homestead Program."

August 19 Comment

A Look At U.S. Military Options In Iraq

Retired Admiral William Fallon, who was head of United States Central Command during the Iraq War, discusses the current conflict.