Sunday, June 27, 2010

How to Get Taxed 87% in America

Under the conditions described so far, if the company you invest in earns $100 on your behalf and wishes to send it to you as a dividend, you'll end up with $28.44. How's that? Corporate taxes at the maximum federal and average state rate will take $39.10. From the $60.90 that's left, federal dividend taxes will take $24.12; state and city taxes, $6.03; and Medicare taxes, $2.31. That leaves $28.44.

This post is probably a good reason for not moving to NY. Ever. :)

# Posted via email from opportunity__cost