No. of Recommendations: 5
Assuming the change in the dividend tax rate is not retrospective, there will be time to institute a special dividend before the new rate comes into effect. No need to do so in anticipation.
There are already several dividend tax rates, qualified dividend rates of 0, 15, 20 (plus the 3.8% Medicare supplement) and non-qualified rates at ordinary income tax rates. Rather than abolish the qualified rate, more likely Congress will fiddle with the income thresholds for the various rates.
And given the outside political influence the dividend earners have on the body politic of this country, I wouldn’t hold my breath waiting for it to happen.
Remember the Carried Interest Loophole, which disproportionately helps the 1%, and the many calls for it to be abolished.
