Radio New Zealand - Te Reo Irirangi o Aotearoa

Obama seeks to raise taxes on dividends

Updated at 10:08 pm on 14 February 2012

United States president Barack Obama has proposed a big jump in the taxes investors pay on dividends, as part of a $US3.8 trillion budget plan.

Mr Obama has previously sought to raise the current dividend tax rate of 15% to 20%.

Now, in his 2013 budget plan, he proposes to raise the rate to the top income tax rate, currently at 35% but scheduled to rise to nearly 40% next year.

The proposal includes $US1.5 trillion in new taxes, much from allowing Bush-era tax cuts to expire.

The president is also asking Congress for $US476 billion for job creation and infrastructure investment.

His proposal earmarks billions of dollars for roads, railways and schools and to hire teachers, police and firemen.

The BBC reports Republicans say the budget, which must be agreed between the White House and Congress, would not curb the deficit.

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