In addition to the changes enacted in JGTRRA
2003, a shift in the proportion of two-wage earning families also affects the distribution of MPT.
reduced the tax penalty for paying dividends relative to retained earnings, thereby increasing the incentive for firms to pay dividends.
The international investment responses to JGTRRA
were substantial, implying an elasticity of asset holdings with respect to taxes of -1.
After the JGTRRA
, high-income-tax S Corporation owners pay tax on dividends at a 15% rate only.
These distortions were reduced, but not eliminated, by JGTRRA
alleviates this problem to a substantial degree.
individual income and estate tax provisions in EGTRRA, JCWA, JGTRRA
Individual tax rates: All the individual marginal tax rates under EGTRRA and JGTRRA
are retained (10%, 15%, 25%, 28%, 33%, and 35%).
changes the prior example as follows: When the shareholder receives the $65 dividend, she will include it in income at the 15% rate, but she can still deduct her charitable contribution at her marginal rate of tax, which may be as high as 35%.
Strong growth in household income and consumer spending has boosted revenues in recent quarters, as have the additional federal grants authorized under JGTRRA
A section of the JGTRRA
that presents a buffer against the capital gains issues is the change in rate for qualified dividends.
Amstadt has deep experience in tax planning and is highly qualified to provide insight on JGTRRA