1/11/2014

For those who weren't aware: Top federal income tax rate now 45 percent, top capital gains tax up 10 percentage points

From Politico:
. . . Democrats have pushed through several new taxes on the well-to-do — many coming online this year — making the top tax bite steeper than advertised. By how much is a matter of opinion, but some experts say the true top rate is about 45 percent — 5 percentage points higher than the usual sticker price or higher still depending on what’s included in the mix. . . . 
Taxes on capital gains, for example, top out at 25 percent, once various surcharges are included, a sharp increase from 2012. . . . 
Thanks to quirks in the law, some may be subject to the tax but not paying it while others who are exempt may nevertheless be paying it, said David Kautter, managing director of the Kogod Tax Center at American University. . . . 
The health care law also imposes a new 3.8 percent “net investment” tax on capital gains, dividend, interest and other investments, in addition to the regular 20 percent capital gains tax. That’s expected to generate $123 billion over a decade. . . .  
That will cut the after-tax income of the top 1 percent, who earn at least $506,000, by about $50,000 or about 4.5 percent, according to the Tax Policy Center. The bite is much bigger for the very rich. Those who earn at least $2.6 million, enough to put them in the top one-tenth of 1 percent, will lose about $322,000 or about 6.2 percent of their income. . . . .

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1 Comments:

Blogger kotetu said...

Wow, that's high. This tax raise is going to hit those dealers and pimps hard, assuming they report their "income from illegal activities" as is explicitly required by the IRS.

I've got a screen capture and a link of the instruction to report such income:
http://legendarykotetu.blogspot.com/2014/01/how-silly-can-federal-government-get.html

1/11/2014 11:15 PM  

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