If your earned interest is over $450,000.00 a year I do feel sorry for you and your having to pay an additioal 1.5% on that income. That just *****.Originally Posted by GeoFisher
Of course capital gains are a fixed rate of 15% so I don't think you will be affected.
Here is a little food for thought in Financial news today:
According to the IRS, which recently released 2009 data from the 400 richest individual income tax returns, the real runaway growth in wealth has come from capital gains. In the last years of the bubble, the "Fortunate 400" made nearly half their income from capital gains (a.k.a.: profit from the rising value of an investment, such as stocks or property) and less than 10% of their income from old-fashioned wages.
The average income of a top-400 earner grew by 650% between 1992 and 2007 to a whopping $344 million. Over that time, the average salary didn't even double. But the average capital gains haul increased by 1,200%. So how do the richest get richer? Not from their wages. From their investments.
So we (I) pay over 24% on my Fed tax from wages and Warren Buffet pays 15% on his capitol gains. Thats fair?
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