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MythBusters
  • A tax increase on dividends would only be small and largely unnoticed.
  • If Congress lets the 15 percent maximum rate expire, the dividend tax rate for many could jump to more than 39 percent.
  • I reinvest my dividends, so this doesn't affect me.
  • Whether you or the funds in which you invest pay the taxes, it still means less money for you.
  • I don't own stocks because I only invest in a 401(k). Why should I care?
  • Chances are your 401(k) invests in dividend-producing stocks because they're a steady and secure source of income.
  • I don't receive dividends, so I shouldn't care.
  • You are nonetheless impacted. A company's dividends help it attract investors. Higher tax rates on dividends will mean less investment in the future. That means fewer funds to make needed capital improvements.
  • This doesn't matter in the real world; it's just Wall Street.
  • If Congress lets the dividend tax rate reduction expire, you will be the one who pays.
  • My voice doesn't count, what can I possibly do?
  • To your Representative or Senators, your voice is the most important thing they hear.
  • Tax cuts don't help those who need it most.
  • The vast majority of investors directly holding dividend-paying stocks are senior citizens who cite current income as their reason for investing.
  • The dividend tax rate reduction doesn't help those who need it most.
  • The dividend tax rate reduction benefits more than 27 million households — 65 percent of which have incomes less than $100,000
  • Reducing the tax rate on dividends hasn't worked.
  • Total dividend payments have jumped sharply since the dividend tax rate reduction took effect.
  • Only rich people invest in dividend-paying stocks.
  • 19.6 percent of households receiving dividends had incomes below $25,000. 36 percent had incomes below $50,000. And 65 percent of households receiving dividends had incomes below $100,000.
  • Corporations, like big utility companies, should pay their share.
  • All corporations already pay taxes. And then the federal government taxes you on the same profit again.
MythBusters
Myth Dividends ONLY benefit the wealthy.
Fact 65% of households receiving dividends had incomes below $100,000.
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