Low Interest Rates Raise Interest in Dividend Stocks

SUSIE GHARIB: Paltry interest rates have made dividend paying stocks one
of the hottest investing ideas of the past year. Tonight’s commentator says
the president’s budget plan, which raises taxes on those dividends, is in
need of reform. Here’s Todd Buchholz, author of “Rush: Why You Need and
Love the Rat Race.”

President Obama have a grudge against stocks and dividends? In his last
financial disclosure, he unveiled financial assets worth between about $3
million and $12 million. What did he do with his money? He invested only
10 percent in stocks. Meanwhile, he’s keeping up to half a million dollars
in a bank checking account. That’s a lot of cash. Don’t we taxpayers pay
for his dinners at the White House? Is he buying new tires for Air Force
One? Did his bank give him a new toaster in exchange for opening an

I’m more concerned, though, about the president’s gripe against
dividends. His latest budget argues for a top tax rate of 43.4 percent on
dividends, almost three times today’s rate. His timing is terrible; just as
baby boomers are heading to retire, their advisors are telling them to dump
stocks and replace them with a steady flow of income from bonds. What
happens when the stock- dumping begins? All the president’s men and women
and their Fannies and their Freddies won’t be able to put things back
together again. Instead, we should be cutting dividend tax rates so that
boomers hold onto their shares. Dividends are not a dirty word; they are a
reward for waiting and for trusting in the American dream. I’m Todd

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