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I reread the FAQ and now realize that the 18% would be in effect in 2006. That really sucks!!
So my 55,000 of wages will be taxed at 28% and my capital gains will be taxed at 20%. And I add them up and that is the tax I owe, correct? Sorry if I seem like a no brainer.

Hardly. A no brainer wouldn't have gotten it, and you have it down pat. Almost. Remember that 28% is your marginal rate, IOW the percentage you pay on your last dollar earned. You don't pay any tax on the income that constitutes your personal exemptions and itemized or standard deductions. Then you pay 15% on whatever takes you to the top of the 15% bracket. Only then do you begin paying at 28%.

Phil Marti
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