[quote=AN][quote=SK in CV][quote=AN]does this touch the truly rich with 0 income and all cap gain and dividends?[/quote]
I suspect what you mean by 0 income is no wage or business income. Yes it does. It would increase the top marginal tax rate on long term capital gains to 28% (not including the 3.8% medicare tax). Still more than 25% lower than the top marginal rate on high wages.[/quote]Not unless they’re smart enough to only sell enough to fall below the top tax rate, right? Then this wouldn’t affect them. They’re the people who can afford to pick when the sell stuff. If you only sell to have $457,600 of cap gain, then your tax would be 20%, if you sell $457,601, then your rate would be 28%. If I was in that position, why would I want to sell $457,601 and incur $40k more in taxes. I would hold off or find other way to subsidize my life style.[/quote]
Like most all other income taxes, I’m sure it will be a marginal increase. There won’t be a $40K increase in taxes with a $1 increase in income.
And I thought we were talking about the really rich. Those with income of $.5 million even without selling something big. They’ll get hit with it every year.
