What will happen to tax-affecting if the government sits on its hands until January 1, and the tax rate on most capital gains increases from 15 percent to 20 percent. The tax rate on qualified dividends will increase from 15 to 39.6% (or whatever the individual taxpayer’s tax rate for that year is).
Business owner groups are rallying their troops and lobbyists, as any one could predict. The Obama administration’s current position continues to be to keep the capital gains and dividends tax rates at 15% for individuals with incomes below $200,000. This 20% is relatively low historically perspective, the administration argues.
A special luncheon presentation will be dedicated to these tax policy topics on November 10th at the BVR/Georgetown Tax and Valuation Summit. Maybe by then there will be some clear direction from Washington!