Taxation of Capital Gains
The maximum capital gains tax rate was 15 percent, as compared to the maximum individual ordinary income tax rate of 35 percent. Absent Congressional action, the maximum statutory capital gains rate would increase to 20 percent on January 1, 2013, while the maximum individual ordinary income tax rate would increase to 39.6 percent. Beginning in 2013, however, an additional 3.8 percent tax would be imposed on net investment income earned by certain individuals. “Net investment income” includes, among other items, capital gains. Furthermore, the 2013 scheduled restoration of the “Pease limitation” on itemized deductions would impose a roughly 1.2 percent marginal rate on capital gains, bringing the top federal rate on capital gains to 25 percent in 2013.
Witnesses testified about U.S. tax policy and the capital gains tax rate in the context of comprehensive tax reform. The maximum capital gai… read more
Witnesses testified about U.S. tax policy and the capital gains tax rate in the context of comprehensive tax reform.
The maximum capital gains tax rate was 15 percent, as compared to the maximum individual ordinary income tax rate of 35 percent. Absent Congressional action, the maximum statutory capital gains rate would increase to 20 percent on January 1, 2013, while the maximum individual ordinary income tax rate would increase to 39.6 percent. Beginning in 2013, however, an additional 3.8 percent tax would be imposed on net investment income earned by certain individuals. “Net investment income” includes, among other items, capital gains. Furthermore, the 2013 scheduled restoration of the “Pease limitation” on itemized deductions would impose a roughly 1.2 percent marginal rate on capital gains, bringing the top federal rate on capital gains to 25 percent in 2013. close
People in this video
-
Leonard Burma Deputy Assistant Secretary (Former) Department of the Treasury->Office of Tax Analysis
Hosting Organization
Related Video
-
Internal Revenue Service Scrutiny of Non-Profit Groups, Part 1
Acting Commissioner Steven Miller and Inspector General J. Russell George testified about revelations that the Internal …
-
IRS Oversight
John Koskinen testified on Internal Revenue Service (IRS) operations and the 2014 tax return filing season. He said rece…
-
Tax Provisions Extension Markup
The House Ways and Means Committee marked up several bills intended to make permanent several tax credits. They included…
-
Border Adjustment Tax
Tax policy experts, the chief executive officer of Target Stores,and the former CEO of Walmart testified at a hearing on…