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How much do you know about capital gain tax rate?

  1. Jonathan Cooper profile image54
    Jonathan Cooperposted 6 years ago

    In the United States, individuals and corporations pay income tax on the net total of all their capital gains. A capital gains tax (CGT) is a tax on capital gains. The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income. How does the federal government tax capital gains income? Is it 30%? Or is it more higher than that? How much do you know about capital gain tax and its tax rate?

  2. Eric Newland profile image61
    Eric Newlandposted 6 years ago

    It's lower than the tax rate on most other forms of income since Bush made cuts to their rates in 2003 and is largely responsible for the low tax rates that some of the wealthy pay.

    However, it's probably the single smartest thing Bush did during his otherwise mediocre-to-terrible presidency. The 2003 cuts not only created millions of jobs; they actually INCREASED total federal revenue. By hundreds of billions per year, even. One site that I looked at claimed that the extra revenue from the tax cuts could have paid for the entire Iraq and Afghanistan wars if it hadn't been blown on discretionary spending instead.

    The simple fact is, based on proven past results, raising the capital gains tax would be bad for both the people AND the federal government's bottom line. But a lot of people like to ignore that because it reflects poorly on their other agendas.

  3. Aficionada profile image86
    Aficionadaposted 6 years ago

    And it's not only the wealthy who have capital gains. People who sell their houses, furniture, or cars may have taxable capital gains, depending on a number of specifics.

 
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