Catching up on some mags (AAA World/July 2010). Being Tax Smart. Retirees who no longer work, up till now were saving on paying taxes. THE DIVIDENDS WERE TAXED AT 15%, effective Jan 1, it increases to 39%!. This is actually higher than most middle class taxpayers pay (which is currently 25%). Of course this middle class rate is going up because Obama is letting the Bush Tax Cuts expire. ANYONE WHO IS RETIRED, AND VOTES FOR OBAMA NEEDS A CHECKUP, FROM THE NECK UP!
Don't panicl. Read what was posted by another poster. You are using the worst case sennario. For most us us, we will not see an increase in taxing dividends and capital gains if Obama's tax plan is passed.