According to WSJ’s Laura Saunders it really is happening. Until this week, investors were waiting to
see what the Supreme Court would do about the 3.8 percentage-point surtax on
investment income, part of President Obama's health-care overhaul. The Internal
Revenue Service hasn't yet released guidance on the new tax. So when the court affirmed the law on
Thursday, investors—and tax advisers—started scrambling.
The new tax, which Congress passed in 2010, affects the net
investment income of most joint filers with adjusted gross income of more than
$250,000 ($200,000 for single filers). Starting on Jan. 1, 2013, the tax rates
on long-term capital gains and dividends for these earners will jump from their
current historic low of 15% to 18.8%, assuming Congress extends the current
law.
If, on the other hand, Congress allows the tax rates set in
2001 and 2003 to expire on Dec. 31—an unlikely scenario, according to many
experts—the top rate on capital gains will rise to 23.8% and the top rate on
dividends will nearly triple, to 43.4%....
No comments:
Post a Comment