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Magellan Midstream Partners LP Message Board

  • rpfla rpfla Apr 21, 2010 7:06 PM Flag

    Effect of Divi tax changes

    Come 1-1-11 15% traditional divi goes to "ordinary income", effect will be substantial and worse for high income rates going higher also; unless an Obama flip-flop occures.
    My Question, for the Board, will this not result in attracting funds into MMP style unit shares and distributions, thereby resulting in a share increase, for no other reason than the tax-man is coming,soon,
    I think it'll will result in a 10-15% run-up.

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    • I believe you are correct in that McCain would not have been much different. That is why we have to vote every menber of congress out. We have to start to take back our country and rebuild on capitalism, not socialism. We must rely on charity at home instead of supporting our enemies abroad. Why are we in the U.N.? What have they given us for our money?? We need to start thinking of this country more as a business than a social experiment. When we do that we will prosper.

    • I agree! I think it is only logical. That is why we are seeing all these MLP etf's and funds starting. This will be a big seller for all the brokers. Why wouldn't you invest in some stock or fund that immediately gives you a 20% advantage? I am selling my AAPL today and buying more MLP's. My favorites are MMP, BWP, and EPD. Also, growth sector in my opinion and the only sane choice is nat.gas. I guess you can tell I love these investments.

    • Everybody is a moderate in their own mind. Listening to what your described ding bat, Palin, actually says, it seems to me her words make more sense than VP Biden's. What would that make him? No answer necessary, let's stick with partnerships and other investments.

    • Most MLP's 'dividend' structure is 'return-of-capital' and not subject to taxes in the same way as other divend paying stocks. Besides, all my MLP's are in tax-sheltered (IRA/401k rollover) accounts, so it does not matter to me anyway (I know I know, a lot of people say not to hold MLP's in tax sheltered accounts, but that is bogus).

    • Since I've been shifting some funds into MLPs from my normal dividend focused stocks, I agree with you. Some of our family members are shifting into tax free municipals as well. I suspect that in spring 2012 when everyone is filling out the 2011 tax forms the White House will be preaching about the "moral goodness of paying higher taxes to take care of the 47% who now no longer pay Federal Income Taxes". All of this should make Obama's 2012 re-election campaign a real challenge. I'm guessing that the USA can't take anymore "Change" from him.

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