Read My Lips: More New Tax Cuts - The Distributional Impacts of Repealing Dividend Taxation

Brian Roach

No 03-01, GDAE Working Papers from GDAE, Tufts University

Abstract: The Bush administration advocates its January 2003 proposal to repeal personal dividend taxation on the basis that the cut would stimulate the economy, primarily benefit American seniors, and eliminate an unfair case of "double taxation." This paper primarily analyzes the proposal using a different criterion - its distributional impacts. Contrary to the administration's claim that seniors receive over half of all dividend income, U.S. Census Bureau data indicate that seniors receive only about one-quarter of dividend income. Dividend income is more concentrated towards high- income tax filers than the distribution of U.S. income as a whole. About two-thirds of dividend income accrues to the top 10% of tax filers. Less than one-fifth of tax filers with adjusted gross incomes of less than $75,000 have any dividend income at all. Also, dividend income is highly skewed by race - only 8% of blacks and 6% of Hispanics receive dividend income.

References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.bu.edu/eci/files/2020/01/03-01DividendTaxes.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://www.bu.edu/eci/files/2020/01/03-01DividendTaxes.pdf [301 Moved Permanently]--> https://www.bu.edu/eci/files/2020/01/03-01DividendTaxes.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dae:daepap:03-01

Access Statistics for this paper

More papers in GDAE Working Papers from GDAE, Tufts University Contact information at EDIRC.
Bibliographic data for series maintained by Abdulshaheed Alqunber ().