Dividend tax

The dividend tax is the tax on corporate dividends.

George W. Bush proposed in 2003 to eliminate the U.S. dividend tax. As can be seen from the chart below, doing so would have little effect for the bottom 60% of wage-earners, and greatly reduce taxes for the upper 5%, weighted most heavily to the super-rich. More than half the benefits would go to people making more than $200,000 per year, a quarter to people making more than $1 million per year.

 TAX BENEFITS FOR 2003 BY INCOME:

 Income Percentile: 0-20
 Income Range*: $0-9,964
 Average Change in Tax: -$6
 Percentage of Total Income Tax Change: 0.4%

 Income Percentile: 20-40
 Income Range*: $9,965-21,349
 Average Change in Tax: -$20
 Percentage of Total Income Tax Change: 1.3%

 Income Percentile: 40-60
 Income Range*: $21,350-37,834
 Average Change in Tax: -$47
 Percentage of Total Income Tax Change: 3.0%

 Income Percentile: 60-80
 Income Range*: $37,835-68,329
 Average Change in Tax: -$168
 Percentage of Total Income Tax Change: 10.7%

 Income Percentile: 80-90
 Income Range*: $68,330-98,053
 Average Change in Tax: -$304
 Percentage of Total Income Tax Change: 9.7%

 Income Percentile: 90-95
 Income Range*: $98,054-133,858
 Average Change in Tax: -$622
 Percentage of Total Income Tax Change: 9.9%

 Income Percentile: 95-99
 Income Range*: $133,859-316,894
 Average Change in Tax: -$1,777
 Percentage of Total Income Tax Change: 22.7%

 Income Percentile: 99-100
 Income Range*: $316,895 and up
 Average Change in Tax: -$13,243
 Percentage of Total Income Tax Change: 42.3%

 *Adjusted gross income on tax return

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In the Netherlands there is a tax of 1.2 % per year on the value of the shares, regardless of the dividend.