Dividend tax
The dividend tax is the tax on corporate dividends.
United States
President George W. Bush proposed in 2003 to eliminate the U.S. dividend tax. The main argument for its elimination was that it amounts to a "double taxation"—once as corporate profits and secondly as personal income. [1] Critics argued that eliminating it would have little effect for the bottom 60% of wage-earners, and greatly reduce taxes for the upper 20%. [2] Supporters pointed out that the bottom 60% of wage-earners already pay little in taxes.
After months of wrangling, the U.S. Congress passed the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) that included some of the cuts President Bush requested. He signed the bill on May 28, 2003. Under the JGTRRA, dividends are taxed at a 15% rate for most individual taxpayers. Dividends received by low income individuals are taxed at a 5% rate until December 31, 2007, and are untaxed in 2008. On January 1, 2009, standard income tax rates will again apply to dividend income for all individuals.
Finland
In Finland, a double taxation will be in use of 2005. Income tax is 29% for a stockowner and the total tax will be around 50%.
Netherlands
In the Netherlands there is a tax of 1.2 % per year on the value of the shares, regardless of the dividend.
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