Better Sell Your Stocks Now

As the WSJ reports here, taxes are going up in 2011.  "Last week the Senate Budget Committee passed a fiscal 2011 budget resolution that includes an increase in the top tax rate on dividends to 39.6% from the current 15%—a 164% increase. This blows past the 20% rate that President Obama proposed in his 2011 budget and which his economic advisers promised on these pages in 2008.  And that's only for starters. The recent health-care bill includes a 3.8% surcharge on all investment income, including dividends, beginning in 2013. This would nearly triple the top dividend rate to 43.4% in Mr. Obama's four years as President. We suppose the White House would call this another great victory for income equality."

The Forgotten Man has been warning about this for months.  Time to sell your stocks now, especially those with dividend payouts.  Unless you prefer to give your extra earnings to others under President Obama's vision of income equality.
 

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