As for the overseas cash problem, McCourt has a proposed solution: Make paying dividends tax deductible.
The biggest mess is an increase in the dividends tax rate back to about 40%.
New Hampshire has an interest and dividends tax, a business profits tax and business enterprise value tax.
Most of that group pays most of the state taxes, city taxes, real estate taxes, capital gains and dividends tax etc.
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Last night in the debate, Mitt Romney said he was for making the first 200, 000 dollars of cap gains and dividends tax free.
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In addition to lower corporate and personal income taxes, Singapore also has no capital-gains tax, no tax on bank interest and no dividends tax.
This means that even the 15% capital gains and dividends tax rates on top of the corporate tax rate are unfair, economically counterproductive, multiple taxation.
Investment income is taxed once by the corporate income tax, and then by the capital gains or dividends tax when it is passed through to the individual.
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Making the Bush tax cuts permanent, as Mr. McCain has pledged to do, would leave the top individual income-tax rate at 35%, the capital gains and dividends tax rates at 15% and eliminate the repetitive death tax.
Most other countries either tax the profit at the corporate level and then dividends are tax free, or dividends are distributed tax free at the corporate level and then taxed at the usual individual income tax rates.
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Either all of the profits of the corporation pay the corporate income tax and then dividends are tax free to the recipients or dividends are tax deductible to the corporation and the recipient pays the usual income taxes.
Foreigners are attracted chiefly by Malta's tax system, which allows income tax on dividends to be offset against corporate tax, reducing the effective tax rate on dividends from 35% to 5%.
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Or you can tax the profits at the corporate level and then dividends are tax free to the recipients.
Only if you are a higher rate taxpayer do you pay tax on the dividends taking your tax rate up to the same as it would be from any other income.
Similarly, the tax rate on dividends would nearly triple in 2013, due again to the expiration of the Bush tax cuts and the application of the Medicare payroll tax to dividends as well.
SteelPath issues ordinary 1099s but is still able to pass through dividends as tax-free returns of capital.
Investors have tax on interest, dividends, 0bamacare tax, capital gains taxed at regular income, SEC fees, inflation, etc.
Keith Pomroy , editor of SNL Real Estate Securities Monthy, says that even if corporate dividends enjoy tax-free status at the individual level, REITs, which are required to pay out at least 90% of their income, will continue to enjoy advantages over other investments, from an income perspective.
As you know, the President and Congress are debating increasing the capital gains tax rate and changing the tax rate on dividends to fall in line with ordinary income tax rates so for those in the highest tax bracket, taxes on dividends could go from 15% to 39.6%.
The letter cites a recent study finding that in 2007 more than 27 million tax returns had dividends qualifying for the tax-rate reduction, and of those, 30% were from taxpayers age 65 and older.
See the Capital Gains tax, tax on corporate dividends, and the Death Tax.
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If the 195 REITs lost the tax exemption and dividends were taxed at the same lower rate as other corporations, the amount gained would largely be offset by the amount lost from the lower tax rate on dividends, industry officials say.
There are tax systems where there is no tax on dividends at all: a higher corporate tax rate being used instead.
As a result, if the Bush tax cuts simply expire for these higher income earners, the top 2 income tax rates will go up by nearly 20%, the capital gains tax rate will soar by nearly 60%, the tax on dividends will nearly triple, the death tax rate will rise by nearly a third, and the Medicare payroll tax will explode by 62% for these targeted taxpayers.
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As a result, the top two income tax rates will jump nearly 20%, the capital gains tax rate will soar by nearly 60%, the tax on dividends will nearly triple, the Medicare payroll tax rate will skyrocket by 62% for these disfavored taxpayers, and the death tax will rise from the grave with a 57% rate increase.
By law, REITs are required to pay out at least 90% of income as dividends, eliminating the double-tax effect on dividends.
My hunch is that at current tax levels, a higher tax on earned income, and perhaps dividends would increase the tax take but by much less than the percentage increase in the tax rates.
And when you factor in the taxes at both the personal and business level, these charts show that France already has the highest tax on dividends in the developed world and the third-highest tax on capital.
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