The 60 Plus Association announced today that it will launch a program to contact seniors across the country in order to raise awareness about the pending tax increase on dividend income. Without Congressional action in the next few weeks, the tax rate on dividend income – currently set at 15% – will increase to as high as 43.4% starting on January 1.
This increase will directly impact seniors and those nearing retirement. In fact, according to an analysis of tax returns from Ernst & Young, 63% of filers aged 50 years and over had qualified dividend income.
“A tax hike on dividend income will impact Americans of all income levels, in particular seniors,” stated 60 Plus Chairman Jim Martin. “Many seniors rely on income earned from dividend paying stocks to supplement their retirement accounts in order to pay for expensive medications or other day-to-day living expenses. In today’s weak and uncertain economy, a tax hike on seniors’ income would be particularly damaging.”
60 Plus strongly urges seniors, and those concerned with stopping a near tripling of the tax rate on dividend income, to contact their Representative and their Senators before the end of the lame duck session.