Senate Democrats Split From Obama on Taxing Dividends

[progree]

24. Both the qualified dividend rate and the LT capital gains rate remain where they are for bottom 98%

under both Obama and Senate Democrat proposals:

The "lower peasants" -- those in the 15% income tax bracket or below -- pay a 0% rate on both dividends and long term capital gains. For singles in 2012 that is up to a $35,350 taxable income, which corresponds to a $45,100 adjusted gross income (AGI) for a single taking the standard deduction and one exemption (him/her self). For singles who itemize deductions and/or have children, the AGI threshold is higher. For married couples filing jointly in 2012 that is up to a $70,700 taxable income, which corresponds to a $90,200 adjusted gross income (AGI) if they take the standard deduction and two exemptions (one for each person in the couple). For marrieds who itemize deductions, and/or have children the AGI threshold is higher.

The "upper peasants" -- those above the 15% income tax bracket but with income below $200,000 individual / $250,000 married -- pay a 15% rate on both dividends and long term capital gains.

Just to clarify for anyone in the bottom 98% (the "peasants" in the above) who might be worrying about a dividend or long term capital gains increase -- there won't be under Obama's proposals or Senate Democrat proposals, or for that matter, Mitt RobMe's.