AMAC In The Media

Retirees Will be Hurt Most by Dividend Tax Hike, Says AMAC

‘Even if you don’t own dividend paying stock directly, income from other supplemental investments could be sharply reduced.’ –

BOHEMIA, NY, Dec 7 – Older Americans – particularly lower income seniors – need to brace themselves for a potentially sharp drop in earnings in 2013 if President Obama has his way and hikes taxes on dividend income, according to Dan Weber, president of the Association of Mature American Citizens – the conservative alternative to AARP.

“Even if you don’t own dividend paying stock directly, income from other supplemental investments could be sharply reduced.”

Dividend taxes will rise from 15% to nearly 40% under the administration’s current proposals “under the guise of forcing the rich to fork over more of their earnings to fund the government,” Weber said.  “The only problem is that it’s the nation’s retirees who will suffer most of all.”

According to analysts, nearly half of seniors aged 65 and over receive dividend income to supplement retirement benefits.  A Federal Reserve survey of consumer finances shows that retirees earning as little as $29,000 a year depend of dividends for 11% of their earnings and those earning between $30,000 and $49,000 a year rely on dividends for as much as 14% of that income.

“So, it’s not the rich who will suffer, it is those who can least afford the new taxes.  In addition, if companies start relying on traditional solutions to higher dividend taxes, they will begin reducing their payouts.  Again, it is those living on fixed incomes who will feel the pain,” Weber pointed out.

“Investors in the higher brackets will, in fact, benefit because, by reducing and/or cutting dividend payments, the valuation of the stock they own will likely increase.  Bear in mind that rich investors can wait for the valuations to increase while the seniors who own the same stock need the quarterly dividend checks to sustain their lives,” he explained.

How far reaching will a rise in dividend taxes be?  According to a new Ernst & Young study for the Edison Electric Institute released earlier this week: “Raising taxes on dividends would harm every American who owns dividend-paying stocks, as well as anyone who has an interest in a mutual fund, 401(k) plan, pension plan, or life insurance policy that invests in those stocks.”

NOTE TO EDITORS: Dan Weber is available for telephone interviews on this issue.  Please contact John Grimaldi at 917-846-8485 or jpgrimaldi@verizon.net to set up a chat.

ABOUT AMAC

The Association of Mature American Citizens [http://www.amac.us] is a vibrant, vital and conservative alternative to those organizations, such as AARP, that dominate the choices for mature Americans who want a say in the future of the nation.  Where those other organizations may boast of their power to set the agendas for their memberships, AMAC takes its marching orders from its members.  We act and speak on their behalf, protecting their interests, and offering a conservative insight on how to best solve the problems they face today.

Read more articles by Daniel C. Weber

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72 Comments on "Retirees Will be Hurt Most by Dividend Tax Hike, Says AMAC"

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John
3 years 9 months ago

I’m hearing over and over on these pages, OUR ONCE GREAT COUNTRY, someone please tell us how to get back there. Not only tell us, but show us the way. Can we expect that here with-in A.M.A.C. ?

Jim McCraigh
3 years 9 months ago

2014 elections! All of us over 55 MUST VOTE those clowns who would vote to tax retiree dividends out of the Congress and tie Obama’s hands! If we don’t ALL turnout well then… forget it. We all did not vote last November…

John
3 years 9 months ago
I have worked all my life and paid into S.S., Medicare, Fed, State, Local, all the req. . I saved in a 401K, and later in a IRA. I was under the impression I was building, or at least partially building my retirement. Not further funding Gov’t assistance for the next- gen. or the young wanting to live on assistance. And we get a President (term used loosely), he is not my President, that increases assistance to the young able bodied, off the backs of people like myself. I will take my IRA out this year and pay 15% taxes instead of a possible 25-40% next year, and stop earning dividends to which I would willingly support bad behavior of this administration. I will further explore ways to stop funding a defunct and ill run government. I’m 62 and more and more willing to quit working and stop paying taxes.… Read more »
scott meth
3 years 9 months ago

THE AMERICAN CITIZEN HAS TO WORK THEIR WHOLE LIFE AND AFTER PAYING IN TO THE SYSTEM HOPE TO GET THERE BENEFITS AT 62 OR 66.THE ILLEGAL ALIEN OR WELFARE LEECH OR PARASITE WHATEVER YOU WANT TO CALL THEM GET BENEFITS STARTING AT AGE 18 WHEN THEY CREATE 6 KIDS WITH 5 DIFFERENT BABY DADIES OR COME TO THIS COUNTRY ILLEGALLY. FREE RENT (SEC EIGHT ) FOOD STAMPS FREE CHILD CARE UTILITIES CELL PHONE AND MONTHLY STIPEND.THEY GET THESE BENEFITS THEIR WHOLE LIFE AND THE TAXPAYER HAS TO FUND THESE LEECHES.WHAT DOES THE TAXPAYER GET FOR PAYING FOR FUNDING ALL THESE FREEBEES HIGHER TAXES AND 1 PERCENT INTEREST ON YOUR SAVINGS ACCOUNT I THINK WE WERE ALL DUPED BY OUR GOVT.

PaulE
3 years 9 months ago

If you have any savings, you likely won’t qualify for any government assistance. Of course, the government can always elect to copy what Argentina, another bastion of socialism did, which is nationalize the IRAs and other such retirement accounts. All in the name of “fairness” of course.

Bernie S
3 years 9 months ago
Who has caused this Great Country of ours to be in such poor financial distress? You and me. I don’t think so. It is our very leaders that we have elected. The Congress and the President of the United States are the ones who have created this mess. And how do they plan on correcting this mess. They are penalizing the good, hard, working middle class. We are the heart and soul of our Country. Destroy us and this Country will be destroyed. Most of the people who voted for Obama give nothing back to this Country. All they want to do is take from the people who work hard and are proud to be Americans. This election proves one thing. There are more voters who are freeloaders than there are working class voters. We are doomed until we can get every decent, working class American to the polls and… Read more »
Gary
3 years 9 months ago

I am sorry but you will not be able to vote them out as long as George Soros is counting the votes. Electronic voting will cause the demise of our great Republic for it gives the elites a way to rig every election, and how can you prove it isn’t so. Promote paper ballots at least.

MaryAnn
3 years 9 months ago
“destroy us and the country will be destroyed” That’s what has already happened. Lower interest rates on CD savings came almost completely at the expense of local economies. Seniors who used to get that interest eat at local restaurants, go to local cultural events, spend their money on the grandkids. When that spending goes down, local businesses pay less taxes. Thus, the ‘neighborhood” becomes less interesting, less safe, and less able to attract the spending money they still have. So, the money that’s still left for spending is more likely to be spent on cruises and casinos instead. Multiply that effect by these “tax the rich” schemes….that money will come directly from local spending. And we have no control over it. The “Republican-conservates” in the HOR are useless. How else can you you explain Boehner still being in a position to negotiate? As far as I’m concerned, Boehner’s caving on… Read more »
T Charles
3 years 9 months ago

MaryAnn,

Bravo! Way too many RINOs. We’ve been dumped by the democrats and the would-be democrats a/k/a republicans, and have no stalwart conservative representation except, perhaps, the Tea Party. A pity!

Granny
3 years 9 months ago

I voted , but why?? He was elected before my vote was even counted.

David D, RN
3 years 9 months ago
Carol Durand says: 12/08/2012 at 11:05 am “What are the Obama followers going to say when we are ALL overtaxed and ALL are affected by the schemes to turn our America into a completely socialist country?” Carol, the answer to your question is, they will say that the conservatives are the reason that things are going badly because the conservatives treated The Prescious badly and didn’t give Him the support that He deserved because conservatives are all racists and the ONLY reason ANYONE would not humbly obey The Precious is the color of His skin. And the faithful will beleave this because they know that all conservatives are full of hate and only care about the rich and privileged 1%. Do you think that I am exaggerating? I am not; I am being dead serious. How do I know? Is it because I can predict the future? No, it is… Read more »
Raymond
3 years 9 months ago
I believe if hard working Americans stop paying their taxes. I mean just adjust your W4 to show more dependents we will be paying less withholding and give the gov’t less cash flow. We can then tell them that we are not willing to pay outrages taxes to support the non workers. then file for tax filing extensions until the following October. The cash flow will dry up. What can they do but adjust spending down to the level of income like the families have to do. The only way we can protest is to cut off their income. Even the 16000 new IRS agents won’t be able to keep up collections. Next we need a massive protest march in DC to tell them shape up or you will be taken out in the primary next election. We the people have to begin to take matters into our hands or… Read more »
T Charles
3 years 9 months ago

Raymond,

Right on! We need a list of advertisers to boycott NOW! Then, let’s see if the “takers” can support the main stream media and its financial supporters. The sooner, the better.

Milt Meisner
3 years 9 months ago

Sounds like a great idea, however, the flaw is that the libs govt. will BORROW MORE MONEY, instead of cutting back.

PaulE
3 years 9 months ago
What you’re describing by fudging your number of dependents won’t work. It’s called tax fraud and the IRS always wins. First the IRS will either slap you with a fine or seize your property for back taxes. So the IRS will get the money owed one way or the other. Remember the way the IRS works is you’re guilty until you can prove you’re innocent. One of the many wonderful things about how the IRS was structured. The second point is that by 2014, if Obama moves as fast as I expect he will, elections will be largely symbolic events. Just like in many other socialistic countries. Everyone knows the leader and his minions will win re-election. The only issue is how big the “landslide” will be. By 2014, Obama will have instituted so many regulations and done so many end runs around Congress, that he will have made himself… Read more »
Edward Parker, Jr., MD
3 years 9 months ago

Howard Dean, former governor and presidential aspirant, admitted recently that everyone’s taxes need to be raised. He is the only public Democrat figure to tell the truth about what the Democrats really want to do. I fear many Republicans in Congress have become used to big government and, like Democrats, cannot imagine reducing the size of any programs let alone eliminating any government programs.

PaulE
3 years 9 months ago

Yes, I’m sure Howard dean received a less than friendly phone call from Axelrod after his appearances on CNN, CNBC and MSNBC letting the truth out of the bag before the White House is prepared. Dean was even smiling about it, when he was mentioning raising taxes on everyone.

Tenorgirl
3 years 9 months ago

It is very disheartening to know that our representatives in congress know how we feel but don’t care. They only care about getting re-elected so they can continue to collect their ballooned salaries. I was listening to CNN this week and they talked about the reductions that will have to be made by those collecting Social Security but never once mentioned the people on welfare having to take a cut in their benefits or paying taxes on the money they get. These people have never paid into the system but believe they are ENTITLED to more money than most people who are working. There is really only one way out of the mess our legislators have gotten us into and that is to stop giving our resources away and start running our country like all households –

scott meth
3 years 9 months ago

150 PERCENT RIGHT

Leonard Uecker
3 years 9 months ago

The election was lost through the “dumbing down” of the electorate. Two groups elected Obama, the freeloaders and the fools.

Dan Brintnall
3 years 9 months ago
Obama doesw need to go but Im afraid we are stuck with him and his liberal ways Our country is no longer the the same U S A I grew up in. Remember in the last election half of the voters did not want obama so if I was him I would not feel to good about 50% of the people not behind him All this liberal thinking only want to take away our rights given to us by the constitution and make us slaves to a socialist government Ask any high school student if he or she is studying the constitution and you will be surprized with the answer. Our future will be full of a generation of people who will not know when the government has taken away all their rights and freedom. All their thinking will be done for them.The future will be spelled out for them.… Read more »
Darold Bouche'
3 years 9 months ago

At the end of the day yours and my kids probably re-elected the government leaders for the next 4 years. Stop whining and just bend over.

Shirley Warren
3 years 9 months ago

Please help us fight Obama on taxing our dividends any more than they are. That’s what we depend on to carry us over with our Social Security.
Obama just needs to quit spending and quit going on vacations that cost the taxpayers. He needs to get rid of 2/3 of his Cjars as well as Michelle learning how to do a few things on her own. She’s the only Presidents wife that has had to have so many people waiting on her…..this includes her two daughters on the payroll.We truly need to get Obama out of the W H before the inauguration. It’s the middle class that gets the slaughtering and we can’t afford to keep everyone going when most of us are lagging ourselves financially. This guy has got to go before we have just the rich and the poor.

PaulE
3 years 9 months ago

Sorry Shirley, but we’re stuck with Obama for the next four years and all the negative consequences that entails. The American people had a chance to end this nightmare on November 6th, but instead opted to give him another four years to finish trashing the country. Unfortunately, there are more idiots out there that believe in his hope and change nonsense, that is merely thinly veiled class warfare and envy politics, than there are people who realize what is necessary for this country to get back on the right track and put 23 million people back to work. Now we just have to live with the consequences as best as we can. It won’t be easy, but there is no other option. No one is going to swoop in and save us from Obama at this point. Just do the best you can.

David D, RN
3 years 9 months ago
Carol, in her post (above) asked, “Is an “Obama-phone” and a free ride worth forfeiting the America we once were proud of?” The bulk of our fellow citizens have given their answer; “yes! America? Who cares, just shut up and give my phone!” Thomas Jefferson once commented that no law or document can preserve a peoples’ library, not even our magnificent constitution. The only thing that can preserve liberty, he said, is a population of free citizens who are prepared to fight for their freedom at any cost. That generation is passing into memory and being replaced by a generation of Americans for whom the hard and uncertain path of liberty is just too much trouble. After all, free men and women must work hard and steward their resources wisely so that they can handle life’s inevitable trials, like the need to plan how to pay for medical care when… Read more »
getitright112
3 years 9 months ago

You have said it well. Funny thing tho, I have some family on SSI and mixed racial that would not vote for Obama on a bet. Some people just did not vote for Romney after his remarks about everyone who gets a government check being (to paraphrase) leeches. They sort of felt after 40-50 years of hard work paying into soc. sec. that it was not just an entitlement. It upset me but I voted against Obama so i voted for Romney. I think he might have been good for this country even if he seems to have no clue about the blue collar crowd or even white collar that is not in his pay bracket. Obama is slick & managed to recover from his mistakes in the campaign by what ever means it took. And those who care were out voted by those without a clue.

PaulE
3 years 9 months ago

Very well said!

Old Papa
3 years 9 months ago

SOCIALISM ! It works great for the very rich and the very poor. It eventually turns the middle class poor. Then the government runs out of other peoples money. “Revolution” Repeat.

God……. Please bless America and help us survive Obama.

Harvey
3 years 9 months ago

If I am not mistaken, if Obama gets his way, the increase only applies to those with AGIs of over $250,000.00. This is really class warfare which will do the country no good and it will not solve the deficits problem since the extra tax on the rich will only run the federal government for 10 days at the most.. Where will all the rest of the revenue needed come from? We need to completely overhaul the tax code and establish very steep spending cuts. Printing more money only causes inflation which is really a hidden tax on the people, especially the poor and middle class.

PaulE
3 years 9 months ago

Harvey,

This is standard socialism. It starts by attacks on one class, in this case those that Obama has targeted as “rich”, in order to gain acceptance of the majority who think his policies won’t affect them. Divide and conquer strategy 101. Then over time, as has been the case in every other country where socialism has been tried and failed, the target for additional taxes moves downward on the economic scale. The definition of rich will be modified to be $150,000, then $100,000, and so on until it is just above the $30,000 number the Democrats seem to think is the sweet spot for their voter base. At some point in the next two to three years, you can expect to hear that since revenues are not coming in to the government as expected, we have no choice but to increase taxes on everyone in the middle class.

Dale
3 years 9 months ago
Unfortunately, the four years ahead with Obama’s leadership vacuum will be darker than we wish. As said, we need to concentrate on finding a charismatic, conservative that can not only reach out to disheartened, non-voting Christians but also the Latinos. Right now, Rubio seems a good candidate but there will be others. Also, all Constitutional-leaning Supreme Court justices need to hang in there until 2016 (essential!). My concern is that Obama makes no bones about saying how he will ‘fundamentally transform America’ and will continue ‘bold steps’ (translated, ‘Progressive Agenda’) in the fashion of FDR to pull us out of this darkness. As you recall, FDR had 4 terms and still didn’t get it right — let’s not put it by Obama that he might try for the 3rd and 4th term — can’t even imagine what that would be like!! Our strife to overcome this will be difficult but… Read more »
PaulE
3 years 9 months ago

One of the major things we need to hope doesn’t happen is that Obama will be able to appoint one or more justices to the Supreme Court. If he gets that opportunity, then virtually nothing is safe anymore in the United States.

dan
3 years 9 months ago

rubio, is not conservative as most of the GOP is not conservative….they are rino’s as most are for big government and not limited constitutional government..notice not many stand for the Republic…most refer to the USA as a democracy…not a Republic…a major mistake….

Angela M. Rosati
3 years 9 months ago

I voted for Romney because we needed and still need a smart business man who can turn America into a great economy. I didn’t vote for a know-nothing perpetual student who never dirtied his hands and was groomed by Saul Alinsky. obama (no typo) knows nothing about business or he would allow the “greedy” oil companies to drill for oil, thereby creating more jobs. As for taxes, o didn’t keep his promise of not raising them. He’s a liar and anyone who opposes him is called a racist! Now he’s asking for more stimulous!! No more and stop funding our enemies! No wonder they call us stupid Americans!!

David
3 years 9 months ago

Agree! Well said Angela.

TC
3 years 9 months ago

I agree with all of you above. What is so mind-boggling, is the three million people that voted for McCain in 2008–they stayed home and did not vote! That was the higest realm of stupidity. What did they think was going to happen??? These same people truly didn’t care about their country, but rather themselves and their pride. We now have to look to 2014–we did it in 2010, and we can do it again. The middle class that will be hurt, will be liberals along with conservatives, and it is my prayer and hope that the so called liberals will open their eyes and begin to see the evil in our federal government.

Eric
3 years 9 months ago

Just remember, when the so called “rich” get taxed, we will all get taxed – indirectly. They will not absorb this tax. Companies can’t afford to absorb exorbitant expenses. It will be considered an expense of doing business and will ether attach what ever those fees are, onto the price of the products produced. Which are then passed along to the consumer for us to pay. Or they will be forced to cut major expenses, which are employees. The worst case scenario is that the company closes its doors because it can’t compete.

But then, that is what our President wants, more dependents equals more voters.
Prime example is the council woman in Detroit who is asking the President “where their bail out (for Detroit) is” because “they delivered the votes” for his reelection so why wont he deliver their bail out?

roy
3 years 9 months ago

we keep saying that we are squandering away our children’s future, when in fact if you look at who our children voted for you will realize that they deserve what they got.

Howard Wolf
3 years 9 months ago

Our children deerve what they’re getting, yes! But the greater share of this horrific debt will fall to our grandchildren. Each newborn American will now have $300,000 in debt to deal with. But the liberals don’t have to worry as they intend to abort their babies.

Mary
3 years 9 months ago

Roy, you are so right. Obama probably would not have won if not for the young peoples vote. In fact, anyone who voted for Obama gets exactly what they deserve, unfortunately the rest of us have to pay the price for the stupid ones among us.

Big Red
3 years 9 months ago

Obama stole the election. How else could he tell Medveded ‘I have to wait until after the election when I will be more flexible’.

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