Bernie Sanders claims that corporations are not paying enough taxes: Bernie really does not understand the tax code. But it’s that last that shows that Sanders really doesn’t understand the current tax code. For the current tax rates on capital gains and dividends are most certainly not 20 %. That’s the amount that is charged to the recipient, yes, but there’s another charge on the same gains being made at the company level. The true tax rate is therefore significantly higher than 20%, as I’ve had occasion to point out before: For of course the US doesn’t in fact have a full tax rate of 15% on dividends nor 20% on capital gains. What it has is those tax rates charged to the individual: but there’s another layer of tax that applies at the corporate level. By looking just at who writes the check Hanauer is entirely misleading as to the actual rate of taxation on those monies. The integrated tax rate on dividends is, for 2012, a shade over 50%: The current top U.S. integrated dividend tax rate is 50.8 percent – fourth highest among OECD and BRIC countries And the capital gains tax rate on stocks in incorporated companies is similarly high: The current top U.S. integrated capital gains tax rate is 50.8 percent – fourth highest among OECD and BRIC countries. I hope we can all agree that 50% or so is more than 20%? Indeed, those were the rates for 2012. In 2013 they’re even higher: The current top U.S. integrated dividend tax rate is 50.8 percent – fourth highest among OECD and BRIC countries This rate will rise sharply to 68.6 percent in 2013, significantly higher than all other countries measured The current top U.S. integrated capital gains tax rate is 50.8 percent – fourth highest among OECD and BRIC countries This rate will rise to 56.7 percent in 2013, the second highest among countries measured
Posted on: Sun, 30 Nov 2014 10:41:35 +0000
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