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.

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

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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. ?

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 »
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 »

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

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 »
Edward Parker, Jr., MD

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.

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 –

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

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 »

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.

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.

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 »

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.

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.

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 »

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!!

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.

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?

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.

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