Senate Democrats Split From Obama on Taxing Dividends

[progree]

7. Where the strange number (23.8%) comes from

"The proposed bill would set the basic top rate at 20 percent for both capital gains and dividends. The 2010 health care law included an additional 3.8 percent tax, yielding the 23.8 percent rate. In his 2013 budget, Obama called for taxing dividends as ordinary income, subjecting them to a top rate of 39.6 percent and the 3.8 percent surcharge for a 43.4 percent total. "

(Currently, "thanks" to the Bush tax cuts, both capital gains and "qualified" dividends are taxed at a maximum 15% rate, while the top marginal rate on ordinary income is 35%. Prior to Bush tax cuts: top marginal: 39.6%. I will have to look up dividends and capital gains, a 20 minute search didn't find it, but I think the maximum capital gains rate was 20% and the dividends rate was the same as for ordinary income.)