Grover Norquist, co-author (along with last Sunday’s guest Prof. John R. Lott) of the terrific new book, Debacle: Obama’s War on Jobs and Growth and What We Can Do About It, points out the five tax hikes that most hurt seniors in today’s Daily Caller. After noting the excise tax for those failing to comply with Obamacare’s individual mandate, and the “Cadillac Tax” on high-cost health plans, he points out the increase on tax on dividends:
Third is Obamacare’s dividends tax hike. Starting in 2013, the top tax rate on dividends is scheduled to rise from 15% today to 39.6%. In addition, Obamacare imposes a dividend “surtax” of 3.8% on families making more than $250,000 per year. That would create a top dividend tax rate of 43.4%, nearly triple today’s rate. This will fall very hard on seniors. According to the Tax Foundation’s analysis of IRS data, 70% of households over age 55 receive dividend income. Seventy-one percent of all dividends paid flow to these households. To raise taxes on dividends is to raise taxes on seniors.
Most seniors I know who have figured out how to use a computer use it to check their stock portfolios incessantly, no doubt because they are concerned about the chance that they might outlive their savings. So, while Barack Obama and his apparatchiks are excoriating Republicans for wanting to destroy Medicare, and running commercials showing Paul Ryan lookalikes throwing old ladies over cliffs, they have put a law in place that will triple the tax on seniors’ savings.
In truth, seniors don’t have to worry about running out of money. even with this increased tax. Once the IPAB does its job of denying them medical care, they can take the advice of a former democrat governor and just “die and get out of the way.”