Monday, December 05, 2005

Three Huge Automatic Tax Increases

James Glassman warns of 3 tax increases that will take effect automatically - without action of Congress - unless Congress acts soon. Capitalism Magazine

Dividend tax requires action this month.
Captial Gains tax requires action this month.
Death tax aka Estate Tax can wait a month or two.
Academic research has found that the dividend cut, by increasing what America's 57 million investing families can keep after taxes, boosted stock prices considerably. A paper for the prestigious National Bureau of Economic Research by Alan Auerbach and Kevin Hassett concluded that the cuts "had a significant impact on equity markets" -- a broadly positive impact. Take the cuts away, and stocks will almost certainly head in the opposite direction.

Read the whole thing.

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