Obama’s Dividend Tax Proposal Means More Debt, More Instability

Heritage Insider "The President has proposed raising the tax on dividend income from 15 to 20 percent while his allies in Congress have created a procedural path whereby the income tax rate on dividends could again reach 39.6 percent. At the same time, it has been suggested by some that the deduction for business interest expense is a subsidy, implying that it should be curtailed or eliminated. Raising the tax on dividends and curtailing the deduction for business interest expense are related in that they would both profoundly influence the capital structures of business. They are also both wrongheaded and harmful."