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View Diary: Low capital gains tax rate rewards the rich with no discernible benefit to the larger economy (120 comments)

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  •  The current 15% capital gains rate is too low. (3+ / 0-)
    Recommended by:
    ahumbleopinion, david78209, vzfk3s

    However, there has been a preferential rate for long-term capital gains for a long time. It wouldn't surprise me if the Congress hesitated before letting it go back up to the same level as ordinary income rates.

    Personally, I'm retired and my investment income is paying my bills. It's not a Mitt Romney level of income, but enough so I'm out of the bottom tax brackets. I would sure notice if the tax rate doubled next year. On the other hand, I fully realize most retired people are not supplied with a lot of taxable investments, so I don't really expect the tax code to accommodate the small minority who are. And I know full well that I've benefited over the past decade from having an exceptionally low rate, which was never a sustainable policy.

    •  The rate goes up from 15% to 23.8% next year... (0+ / 0-)

      ...maybe, if I read this right and Congress doesn't change things.

      Right now, the maximum federal tax rate on long-term capital gains and dividends is 15 percent. In 2013, the top rate is scheduled to go up to 20 percent as the "Bush tax cuts" expire. Starting in 2013, all or part of the net investment income, including long-term capital gains and dividends, collected by high-income folks can get hit with a 3.8 percent "Medicare contribution tax." Therefore, the top federal rate on long-term gains and dividends for 2013 and beyond will be 23.8 percent (unless Congress acts to extend the 15 percent rate).
      In that link, scroll down to the second item under Changes Taking Effect in 2013.

      I hadn't heard a word about this being in the "Obamacare" bill, but I bet it's one reason rich conservatives were so upset about it.  This one item could make the tax code considerably less favorable to them -- and that much better for the 99.9%.

      We're all pretty strange one way or another; some of us just hide it better. "Normal" is a dryer setting.

      by david78209 on Wed Jul 04, 2012 at 02:23:50 PM PDT

      [ Parent ]

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