Stifling of Dividends

In case none of you have been listening to the news, the president released his new budget for 2013, all taxes go UP!  So hang on all you small businesses, this will hurt. Let's start with income taxes, the Bush tax cuts expire 12/31/12, that will put the max tax rate to 39.6%, the president wants to increase capital gains taxes to the same level.  Add in the planned phase-out of deductions and exemptions and the rate is 41%. add in the Obamacare's 3.8% investment tax surcharge  and the new dividend tax rate for 2013 is....44.8%, ya hoo!,( per WSJ).  It is currently 15%. How did your think he was going to pay for all the big government programs he wants.  He has increased the size of government 20% in three years.
If you are retired and living on your dividends, your going to get a big tax increase, no matter how much money you earn. Don't listen to that "250,000 income only", it's a lot of crap!  And by the way, if your company grosses $250,000 or more per year, according to the government, you are FILTHY RICH!
There is also new taxes coming out for real estate sold, on personal and investment.  So much for a business friendly administration! 
There is one way out, November 6 is election day, if you don't vote, don't bitch!


Your Business Guru


John


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