The new higher 20% capital gain rate plus the 3.8% Obamacare tax makes a top long term capital gain rate of 23.8%.
This is why over the last 45 years every time the capital gains tax rate has been raised, capital gains revenues have declined, and every time the capital gains tax rate has been cut, capital gains revenues have risen.
But what Obama is proposing would actually double the capital gains tax rate to 30%, leaving America with the third highest capital gains rate in the developed world.
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In summary, CXO Advisory Group found no connection between the maximum U.S. capital gains tax rate and U.S. stock market returns, and no relationship between changes in the maximum capital gains rate and stock returns.
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Nearly every venture capitalist still actively investing today has decried legislation wending its way through the various halls of Congress that would raise the rate of taxation they face to the personal rate of 40% from the capital gains rate of 15 percent.
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When a company buys back stock instead of paying a dividend, the stock value appreciates by the like amount of the dividend and long-term shareholders get a 50% savings on their tax bill (assuming a 40% ordinary income tax rate versus a 20% long term capital gains rate).
Mitt Romney wants to tax his own income at a lower rate -- he wants to lower the capital gains rate, I should say.
The reason for this is that when the capital gains rate was cut, more taxpayers sold their capital and realized their gains, and a rising stock market produced more gains.
But with a French twist on the Mitt Romney tax rate flap, it turns out the French capital gain rate is perceived as a bigger problem than the 75% rate on earnings.
And it does so despite imposing the "Buffett tax" that amounts to a minimum tax rate on capital gains of 30%, only two months after the capital-gains rate increased to 23.8% from 15%.
The U.S. top tax rate is 35% for both individuals and corporations and there is a 15% capital gains rate.
If the Bush tax cuts are allowed to expire the highest marginal income tax rate will go up from 35% to 39.6%, and the capital gains rate will generally go up from 15% to 20%.
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The top income tax rate is now 39.6%, up from 35%, and the top capital gains rate is now 20%, up from 15%.
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The top federal capital gains rate is set to rise from 15% to 20% Jan. 1.
Should it be taxed at the 15% capital gains rate, which is now the rule?
On television, Romney argued that his extremely low capital gains rate is productive.
When he pays taxes, at all, he does so at the low capital gains rate.
Cashing in may make sense since the 15% capital gain rate may never return.
The capital gains rate, which taxes the majority of the income the super wealthy earn, is 15%.
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Are you thinking about bailing out of stocks before year-end while the capital gains rate is low?
This year the federal capital gains rate is 15% plus a Virginia state tax rate of 5.75%.
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They take 20% of that, and those earnings are taxed at the capital gains rate of 15%.
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Capital gains revenues had doubled by 2005, despite the 25% capital gains rate cut adopted in 2003.
But, Gordon adds, don't rush to sell stock because you think the capital gains rate is going up.
We know about the 15% v. 20% capital gain rate and the top rate of 35% not 39.6%.
Future appreciation is taxed at the lower long-term capital gains rate, provided the executive holds the required year.
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In May 1997, under President Bill Clinton, the top capital gains rate was cut from 27% to 20%.
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If you sell before a year has passed, you will be subject to the short-term capital gains rate.
Obviously, the lower capital gains rate as a substitute for inflation indexing cannot be applied to that case.
And he's proposed raising the maximum capital gains rate from 15% to 20%.
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