Skip to main content

View Diary: Reid: Social Security cuts for defense sequester relief would be a 'stupid trade' (255 comments)

Comment Preferences

  •  tie long term capital gains are taxed differently (0+ / 0-)

    Prior to the Tax Reform Act of 1986 long term capital gains were taxed at 50% of the top rate you paid. Because legal tax shelters were so available and widely used by the wealthy that number could be quite low. The TRA86 set a fixed rate at 28% which was about the average long term capital gains tax rate paid by the top 1% prior to the TRA86 legislation. The long term capital gains rate for the top 1% was raised 1/1/13 to 23.8%, so very close to some of the actual historical rates.

    However, cofffeetalk's main point that you really can't compare marginal tax rates before and after 1986 is important. The TRA86 so fundamentally changed the code for individual taxpayers, that the rates are apples and oranges and don't make for valid comparisons.  

    "let's talk about that"

    by VClib on Fri Oct 18, 2013 at 01:46:11 PM PDT

    [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site