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> just not as low as dividends are taxed. Citation needed; Bush tax cuts maximizes dividends and long term capital gains tax rate at 15%; While, our first tw
by smileysteve 8y ago
> just not as low as dividends are taxed.
Citation needed;
Bush tax cuts maximizes dividends and long term capital gains tax rate at 15%;
While, our first two progressive income taxes are $9525 at 10% and $38700 at 12%; (and if head of household these are $13600 and $51,800.) And that's without counting any deductions, like $12k standardized deduction!
So, dividend tax rates are only lower than low income people if you're counting the top 10% as low income.
- Retric 8y agoI said tax not “income tax alone”. Social Security and Medicare are 12.4% + 1.45% and have no ‘deductions’ on earned income below ~125k adding up to: 13.85%. People paying more than 1.25% on earned income are rather common. Many very low income earners are blocked from reviving any benefits from social security, but they still paid.
- smileysteve 8y agoThis is a good point; sorry, was not accounting for payroll tax.