Fix the Debt

Take a look at this website by CEO’s begging/Demanding  Washington to do something to Fix The Debt!

The CEO Fiscal Leadership Council has some serious heavy weights and business leaders who are committed to mobilizing local, state and national support to persuade Congress to enact, and the President to sign, a comprehensive debt deal large enough to stabilize and reduce the federal debt as a share of the economy.

Amen!! I’m really disturbed and disgusted that nothing is getting done on this issue and it could have an effect on all of us! I was thinking of a client I had when I worked at Merrill Lynch. He worked for the phone company and busted his butt to provide for his family and save for retirement.

His strategy was simple: Invest in good stocks that have a dividend and have room for growth. This was a cash account and his hope was that when he retired the dividends would support him in retirement. He was an ideal long term investor in companies and he was rewarded under the current tax code. His dividends were being taxed at a 15% rate!

Fast forward-now if Congress does not act and keep the 15% tax rate in place for dividends; his tax rate could easily double and really hurt this person-is this fair? He’s not rich, he just sacrificed and planned ahead.

What will happen to The Dividend Guy and The Dividend Mantra? Both of these personal finance blogs are committed to bringing readers great ideas on dividend paying stocks that receive favorable tax treatment. In my mind, this is an issue of fairness and giving investors an opportunity to plan for their future!

Just my 2 cents-what are your thoughts?

 

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Dansette