The Obama Administration yesterday backed down from its plan to tax the earnings on 529 savings accounts, a kind of saving account for higher education under section 529 of the tax code. At Bloomberg, Richard Rubin and...
- Monday Map: Dividend Income by State
Monday Map: Dividend Income by State
Today's Monday Map looks at qualified dividend income by state. This is an important aspect of the upcoming "Fiscal Cliff" - the Bush tax cuts created a special category of dividend (paid by a U.S. corporation and subject to certain holding requirements) eligible to be taxed at the capital gains rate (currently 15%) rather than as ordinary income (top rate currently 35%, set to rise to 39.6% next year.) Additionally, a new 3.8% tax on investment income enacted as part of the 2010 health care reform bill goes into effect next year. The combined effect of all these changes is that the rate on qualified dividends will go from 15% this year to 43.4% next year - certainly one of the more dramatic changes set to occur.
The map shows qualified dividend income as a percentage of total income for each state - the top states will be the ones most affected by the upcoming change.
Click on the map to enlarge it.
View previous Monday Maps here.
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