The Motley Fool Discussion Boards

Previous Page

Retirement Discussions / Retired Fools


Subject:  Re: Retirement question about the tax cuts Date:  5/2/2006  11:35 AM
Author:  fleg9bo Number:  10489 of 22172

For those in the 15% bracket, qualified divs & LTCGs will TRIPLE -- up from 5% to 15% -- a 10% absolute increase.

Duh, my bad. I forgot about that 5% rate that exists now. You are right about the tax on divs--it will triple from 5% to 15%. But not CGs--the two rates will be 10% and 20% as before (or your marginal rate if it's lower than 20%). So for folks in the 15% bracket, some of their CG taxes will be taxed at 10%, a mere doubling from 5%. Did I get that right?

Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us