Extra 3.8% capital gains tax in new health care bill

Tax changes are coming and they are going to change the whole game come January 1st, 2011. This is going to be big news in the months to come.


1. Reinstate top rates of 36 and 39.6 percent

Today’s top income-tax rates of 33 percent and 35 percent will most likely return to 2000 levels: 36 percent and 39.6 percent.


2. 20 percent rate for capital gains and dividends

For the past several years investors have been enjoying a 15 percent maximum rate on long-term capital gains and qualified dividends. If Congress does nothing, capital gains would be taxed at 20 percent, and dividends would be treated as ordinary income, with rates as high as 39.6 percent.


3. Reinstatement of the federal estate tax

Thanks to the 2001 tax bill — and the failure of lawmakers to act in 2009 — the federal estate tax is now zero. But come 2011 it roars back to 2000 levels, with a top tax rate of 55 percent on estates worth $1 million to $10 million and 60 percent on estates worth more than that.
 
Quote from misterno:

So what? The guy is already making over $200K, this is small change for him.
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spoken like someone who is neither rich nor knows rich people.

some of the greediest penny-pinchers i know are rich. i can imagine them screaming at uncle sam when they find out about the medi-care tax on capital gains.
 
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