What are the changes that Bush enacted to how dividends are taxed and how will this policy affect corporate profitability?© BrainMass Inc. brainmass.com March 4, 2021, 6:13 pm ad1c9bdddf
Dividend Tax Rate Reduction
Qualified dividend income will be taxed at a maximum rate of 15%; the rate is 5% if your taxable income is less than $56,800 (joint) or $28,400 (single).
The 15% rate is retroactive to January 1, 2003 and ends December 31, 2008.
The 5% rate is also retroactive to January 1, 2003 and drops to 0% for 2008. The old, regular rates return again in 2009.
The technical ...
Here is just a sample of what you'll find in this solution:
"Companies may now pay lower dividends because at lower rate the shareholder will be able to get the same money in hand."