Subtitle: Until You Read This Article.
I’m not one for hyperbole… I’m more of a “here’s the data, deal with it” person, but I’ll make a vast blanket statement for you today. You see, you may not care too much either way about the whole ‘fiscal cliff’ scenario, where an expiration of the so-called ‘Bush Tax Cuts’ of 2001 and 2003 would reset to their previous levels. Perhaps you make under $200,000 as a single or $250,000 as a couple, so if the cuts expire and President Obama extends them in a second term you wouldn’t worry too much. Fine – I won’t spend this article discussing what the appropriate level of taxation is for the many strata of incomes earned in this country. However, I do want to draw your attention to the insidious effect of rolling back the 2001/3 cuts – namely, how the code characterizes dividends.