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How about a little Olympics on the tax issue? Does the United States win the gold medal for having the lowest tax rates on dividends and capital gains? Or does it face rough sledding against those other Olympic countries? But we have to win because we have such a high deficit and low rates and the wealthy are, well, wealthy. As George Tenet, ex-head of the CIA, would say, "Slam dunk."
After a five minute review of Google and figuring out some dirty calculations the United States Downhill Tax Team comes in (flourish of trumpets here) DEAD LAST. Yikes. Against who? Not just against those typical tax havens like Luxembourg and Monaco but against those red-blooded tax cutters--Germany, Switzerland (no real surprise here), Japan, Canada and, gasp, France. FRANCE? Yes, with apologies to John Kerry, France.
I'm hoping that there is some tax attorney sitting out there with insomnia that can back this up but my cursory review shows that:
In Germany the taxpayer gets a euro for euro tax CREDIT for half of the tax due on capital gains and dividends. So if your ordinary tax rate is 25%, the rate on capital gains and dividends is 12.5%. Ditto for Canada on dividends paid by Canadian companies.
For Switzerland I couldn't find a capital gain tax or tax on dividends but Swiss tax law is kind of goofy so I may have missed something but considering that Switzerland is a country where tax evasion is NOT illegal, I can't see much of a tax on anything.
Japan, depending on how you do the calculation could tie for no medal with the US as they tax capital gains at 10% and dividends at 20%. So if you have dividends and capital gains at 50/50 you have a tax rate of 15%.
But I'm going to give the gold medal for tax cuts to FRANCE. 16% tax on Capital Gains and 11% for Dividends.
If the Democrats want to change the rates on capital gains and dividends, then it is ok with me. I just demand they adopt the French model.