Mitt Romney has added a new plank to his campaign tax platform: Cut all ordinary tax rates by a fifth.
It also bears mention that all things were not equal, because 2012 featured one of the lowest top ordinary tax rates in a century of income taxes, at 35%.
Mr McCain offers a seemingly more enticing package of cuts in corporate income tax, ordinary income tax and inheritance taxes.
ECONOMIST: Business-minded voters have doubts about both candidates
The Romney plan would also broaden the tax base and lower ordinary income tax rates, but it would not change tax rates on capital gains and dividends, which the Simpson-Bowles Commission would raise.
FORBES: Tough Politics Are the Barriers To True Tax Simplification
The overall AMT tax rate will be lower than your ordinary income tax rate, so why not hold off and get the benefit of the deduction when you're at a higher rate?
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).
As you know, the President and Congress are debating increasing the capital gains tax rate and changing the tax rate on dividends to fall in line with ordinary income tax rates so for those in the highest tax bracket, taxes on dividends could go from 15% to 39.6%.
One puzzle to tax experts is why Zuckerberg waited so long to cash out, causing that large ordinary income tax hit.
Assets held outside of retirement plans enjoy capital gains tax treatment (under current law) that is generally much more favorable than the ordinary income tax rate.
If the stock pays dividends, then they are subject to the maximum 20% favorable tax treatment, which is far better than if they had accumulated inside and IRA and then distributed at ordinary income tax rates.
FORBES: Tap Into Employer Stock Without Paying Taxes (For Now)
She has no capital at risk (obviously) and pays the ordinary income tax rate.
FORBES: Carried Interest - Any Blame Should Go To Obama And Greens Should Not Care
They will all be taxed at ordinary income tax rates, which can be as high as 44.6%.
This is because when you convert to Roth, you pay ordinary income tax on every investment converted.
FORBES: Want to Boost Investment Returns? Start with Tax Management
Dividends and carried interest taxed would be taxed at ordinary income tax rates for high income taxpayers.
FORBES: Did The Debates Offer Enough 'Hope and Change' for the Obama/Biden Ticket?
The highest AMT rate is 28%, versus 39.6% for ordinary income tax rates.
Ordinary income tax rates are used, so the investor gives up both deferral and capital gains treatment on his returns.
FORBES: Equity Linked CDs: More Garbage Wall Street Wants To Feed You
If Costco were to push the dividend off until, say, January 1, shareholders would be paying at ordinary income tax rates.
FORBES: Vice President Biden Shops Costco As Costco Shops Tax Deal
Short-term capital gains (meaning gains on assets held for less than a year) are taxed at ordinary income tax rates of up to 35%.
In the absence of Congressional action, the current rate will expire, and the dividend rate will revert to ordinary income tax rates.
FORBES: Kraft's CEO Clears The Air About Cadbury And Buffett
Ordinary income tax brackets for 2012 of 10%, 15%, 25%, 28%, 33% and 35% will increase to 15%, 28%, 31%, 36%, and 39.6%.
If the expiration happens, ordinary income tax rate will go as high as 39.6% and capital gains taxes will be hiked to 20%.
On top of his original plan, Romney proposed cutting all ordinary income tax rates by 20 percent and eliminating the Alternative Minimum Tax.
FORBES: Romney 2.0: Generous Tax Cuts, But How Will He Pay For Them?
The New York proposal would see out-of-state commuters taxed on these profits instead at the higher ordinary income tax rates, in line with New York residents.
FORBES: Battle For Fund Managers Underway Between Connecticut And New York
In a traditional IRA, your deductible contributions and growth on the account is subject to ordinary income tax rates, but only when you pull out money.
After all, Democrats were vowing to let the top ordinary income tax rate rise from 35% to 39.6% when the Bush tax cuts expired at the end of 2010.
This results in your having to pay ordinary income tax on the entire value of your company stock holdings if you do such a conversion (rather than just the basis).
Earning a management fee for managing or monitoring assets under management (AUM) results in income that should be taxed at ordinary income tax rates. (Fees earned and taxed in Year 1).
You may recall a time when dividends were taxed at ordinary income tax rates versus being taxed at the much lower long-term capital gains tax rate that they have been taxed for the last several years.
Capital gain rates are set to increase from 15% to ordinary income tax rates as high as 43.4% if you are in the top tax bracket and factor in the new Medicare tax on unearned income.
FORBES: Fiscal Cliff Strategy: 3 Tips For Investors As Rising Taxes Loom
But so long as you're listed as the owner, you can still take it back if you need it, by paying taxes at your ordinary income tax rate, plus a 10% penalty, on the earnings you withdraw.
应用推荐