Stone Soup by Jan Eliot for October 19, 2022

Cause the rich people make the rules.

You have to pay taxes on Social Security income as well.

There is some Internet discussion about Biden’s role in the change to tax SSI. And some also claim he wanted to tax retirement accounts;

" We rate this claim PARTLY FALSE, based on our research. As a senator, Biden voted in favor of two laws that authorized taxation of Social Security benefits. But Democratic presidential nominee Biden has not proposed taxing retirement accounts or a federal property tax."

Source USAToday

That’s what I call a serious loser.

Rich people certainly DO pay taxes on their stock dividends. Lower income people are excused from this tax, though.

You CAN get stock dividends without paying taxes on them if they are in a Roth IRA. In that case you have already paid the taxes on the money that you put in the Roth, the amount you put in the Roth is limited, and high-income people CANNOT put money in a Roth IRA. So again, free dividends, but NOT for the rich.

You don’t immediately pay taxes on dividends in a traditional IRA, either, but you must eventually pay them, because you pay taxes on the IRA when you take the money out.

“… high-income people CANNOT put money in a Roth Ira”.Actually, that is not true. There’s a way around that.

Incorrect tax info—it was in the funny pages, so it must be true.

But the rich do pay a “use” tax on elected officials and bureaucrats as well as a surcharge on lawyers and accountants.

’Cause the Constitution permits the gubmint to tax income, but not investment.

The gov’t pulling my money that I donon’t like is the RMD (Required Minimum Distribution). As a retiree I am required to withdraw a certain amt from my retirement savings every year. Sooo, if I should be blessed to live to 90, I could have nothing, or if I pass before my spose, she would be left with thousands less than she might need to live. All because I MUST take out money that I don’t necessarily need—every year.

Was there a Jan Eliot tax cut on dividends? Or just an ignorant cartoonist?

We’ve just had a moderately wealthy client pay more in taxes than most people see in their lives. So very tired of the we don’t have lots of stuff, so take all the rich ones stuff. Teach. Don’t give.

At least unemployment benefits aren’t subject to Social Security or Medicare withholding. And if taxes are taken out of it now, that may avoid an unpleasant surprise when tax time comes.

Very misleading comic today, like a lot of the new “news” on TV.

It’s also worth noting that you don’t have to be rich to be getting income from stock dividends. In any case, the rich have plenty of other ways of avoiding taxes—and do so on a regular basis.

Oh, honey, wait until you retire and you have to pay taxes on your Social Security disbursements, even though you paid taxes on that same money before it went into your SS trust fund…

Stock dividends are tax exempt in certain situations. However, when they are taxed it’s double taxation. They are payed out of a company’s net income, that is, income that has already been taxed at the corporate rate. It’s the price you pay for limited liability.