jim4silver
Silver Member
- Apr 15, 2008
- 3,662
- 495
It seems like with QE3 and other such easing from other countries going on, plus the huge amount of paper derivatives out there that could collapse (some estimate over a quadrillion worth- or over 1000 Trillion), and further with the overall loss of faith that is sure to come in non-backed paper assets as time goes on, there is another factor that while maybe not as important as these three above is still very relevant that could push more investment $$$$ into PMs soon: new taxes that take effect in 2013.
The primary one I am referencing is the new tax rate on dividend payments which is almost 44% at the upper level, a huge increase from the prior rate of 15%. Many of this country's upper level wealthy make a huge percentage of their yearly income from dividend payments on huge amounts of stock they own. This fact is often revealed when there is an article about how the super rich pay lower tax rates than the rest of us. What those articles often fail to reveal is that these super rich folks are making large amounts of their money from dividend payments thus they get the benefit of a max 15% rate while regular income rates are closer to 35% or so at higher levels.
I know that many of these folks are watching closely because another win for the current administration will ensure that these higher taxes plus all the extra Obamacare taxes are going to happen for sure, while a Romney win might signal a chance to stop these new taxes. I am not endorsing any particular candidate and I am just going by what the candidates themselves are promoting and by looking at the numbers. In my opinion it is not going to matter who wins because things are past fixing with respect to the current debt situation and unfunded future liabilities.
Anyway, if Obama wins again I could see a large amount of $$$$$ that is currently being held in dividend paying stocks being moved to PMs, either physical or PM etfs, which are taxed at a lower rate of 28% max such as art and collectibles, etc. This is especially true now because most of these dividend paying stocks are up and the holders will make a profit when they sell plus there is renewed interest and vigor in the PM markets. This could add further fuel to the PMs and add to all the other bullish factors previously mentioned.
All just my opinion.
Jim
The primary one I am referencing is the new tax rate on dividend payments which is almost 44% at the upper level, a huge increase from the prior rate of 15%. Many of this country's upper level wealthy make a huge percentage of their yearly income from dividend payments on huge amounts of stock they own. This fact is often revealed when there is an article about how the super rich pay lower tax rates than the rest of us. What those articles often fail to reveal is that these super rich folks are making large amounts of their money from dividend payments thus they get the benefit of a max 15% rate while regular income rates are closer to 35% or so at higher levels.
I know that many of these folks are watching closely because another win for the current administration will ensure that these higher taxes plus all the extra Obamacare taxes are going to happen for sure, while a Romney win might signal a chance to stop these new taxes. I am not endorsing any particular candidate and I am just going by what the candidates themselves are promoting and by looking at the numbers. In my opinion it is not going to matter who wins because things are past fixing with respect to the current debt situation and unfunded future liabilities.
Anyway, if Obama wins again I could see a large amount of $$$$$ that is currently being held in dividend paying stocks being moved to PMs, either physical or PM etfs, which are taxed at a lower rate of 28% max such as art and collectibles, etc. This is especially true now because most of these dividend paying stocks are up and the holders will make a profit when they sell plus there is renewed interest and vigor in the PM markets. This could add further fuel to the PMs and add to all the other bullish factors previously mentioned.
All just my opinion.
Jim
