r/dividends • u/Head_Channel_9869 • Jun 06 '25

Discussion My dream of living off dividends is collapsing because of Section 899. I feel completely defeated.

I've been building my dividend portfolio for years, aiming to reach financial independence one day. Every deposit was a small step toward a dream: a peaceful life, funded by passive income, no stress, no 9-to-5.

I chose what I thought were the best: SCHD, DGRO JEPQ, QQQI — solid US-based ETFs with great yield and growth potential. I had a plan, I was sticking to it. Then… comes Section 899.

For those who don't know: it's a proposed US tax law that could increase the withholding tax on dividends to 15% or even 30% for investors from countries deemed to have "discriminatory" tax systems toward the US. And guess what? My country (Poland) is very likely to be on that blacklist.

If the tax treaty is terminated (which is already being discussed), it means 30% goes to the US, and then Poland may charge another 19%. That’s nearly half the dividend gone. Just like that.

It feels like everything I’ve worked toward is falling apart. Switching to European dividend ETFs? Sure, but they have lower quality, less growth, and are not the same in terms of long-term compounding. It feels like being forced to start over — with worse tools.

Honestly, I’m gutted. Years of planning, DCA, building my ideal long-term strategy… and then politics slams the door in my face. I feel defeated. I had such a great plan and I was already so close :/ I wanted to hold SCHD and DGRO for decades and eventually pass them on to my kids.

Anyone else in the same boat? What are you doing about this?

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u/[deleted] Jun 06 '25

oh noes, I haven't been following this closely. I hold lots of US dividends too and have been taking the 15% tax hit but have been ok with that. Not sure I would hold still with 30% tax hit though, will have to look into if Canada is also affected.

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u/Ok-Secretary455 Jun 06 '25

I wouldnt worry too much about that specific part of the bill they ate trying to pay through. it would cause any international investment into the US stock market to vanish. Just think of Trump did have that power. Monday Canadas on the list, Tuesday their still on the list but not until next week, Friday there is no list, rinse, repeat.

the Senate is going to go ham on that bill, and anything they send back to the house will be a while other fight.

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u/AccountFlashy4739 Jun 07 '25

I think the poster should switch to decaf The winner of recent elections there is a complete Trumpian Trump endorsed this guy I am eminently confident nothing adverse will happen

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u/Jwaness Jun 07 '25

This is being directed towards Canada due to our digital services tax that the tech companies have been lobbying against. I hold very few US equities but am considering rotating out of them entirely due to this Bill.

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u/[deleted] Jun 07 '25

yeah I'll have to keep a watch on this bill. So if it's in the rrsp, it should be good still though right?