Is Trump’s ‘Revenge Tax’ About to Shake Your US Investments—And How to Outsmart the Storm Before It Hits?
It’s still less than ideal.
How bad?
You can estimate your loss of return by multiplying your investment’s dividend yield by your WHT percentage.
The S&P 500’s dividend yield is 1.3% according to the current S&P Dow Jones factsheet. So your loss to withholding tax is approximately:
| WHT rate | 0% | 15% | 30% | 45% | 50% |
| Loss of return | 0% | -0.2% | -0.39% | -0.59 | -0.65% |
Thus if you pay 15% WHT now, your dividend return is reduced from around 1.3% to 1.1%
The House’s 50% revenge rate would cut your dividends in half. You’d be losing 0.65% based on the current yield.
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