Here’s what ticks me off.
I was just reading that dividend taxes may rise. OK, rise isn’t really a good way to put it. Skyrocketing more than 160 percent is a better way to express the pending tax.
Now, I think taxes are necessary evils. I just want a fair, limited system that requires the goverment to live within its means, just like we all do. Is that too much to ask? Apparently, the answer is yes.
But this tax hike is just plain evil.
Over the past two years we doled out trillions of dollars to people who entered risky loan agreements to buy homes that were too big and too expensive for them. We rearranged the credit laws and financial rules because a bunch of morons toted up credit card balances that couldn’t fit on the Jerry Lewis telethon pledge board. We bailed out CEOs that threw bad money into risky trading positions.
And, now, they’re penalizing people who put their money into dividend-producing companies. The very companies that propped up the market.
That’s about right.
What’s worse, a lot of these investors reinvest their dividends. So, these investors must pay this tax out-of-pocket. They never get a chance to cash the check.
Same thing with capital gains. The investor assumes all the risk; the government gets all the rewards.
It’s just a bass-ackwards way to approach the economy. Reward reckless behavior. Punish productive behaviors.
What do you think? Am I missing something?