Obama Proposes Doubling Dividend Tax on Wealthy
President Barack Obama’s budget plan calls for taxing dividends received by high-income taxpayers as ordinary income, raising the top rate to 39.6 percent from 15 percent as part of a $1.4 trillion tax increase on top earners over the next decade.
The proposal, in the president’s fiscal 2013 budget released today, would reverse his previous policy that called for taxing dividends more lightly than wage income. The plan would treat dividends as ordinary income for married couples making more than $250,000 a year and individuals making more than $200,000. The dividend tax proposal would raise $206.4 billion over 10 years.
“We simply can’t afford to devote $206 billion for lower tax rates for the highest-income Americans,” Gene Sperling, White House director of the National Economic Council, told reporters today. “Our system for taxing investment income for the most well-off Americans is clearly broken.”