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UncaMikey: <<<<recently some Republicans in Congress have said that they would like to add a capital gains tax reduction also. Here's one article:http://www.cnn.com/2001/ALLPOLITICS/stories/02/06/bush.taxes.ap/index.html >>>>>"Interesting, thanks.Many people are now in the 28% bracket. If the marginal rate is reduced to 15%, without any other changes, then those people will pay *higher* taxes for capital gains than for regular income.If the proposal in the link above (reducing cap gains rate to 15%) is added, then the difference in tax treatment for cap gains is effectively eliminated.I am still puzzling over what all this might mean, both now and at RE time. I think many of us were expecting that cap gains would have lower tax rate than regular income.Wouldn't this also affect so-called 'tax efficient' mutual funds?"It has been my understanding that if a person is in the 15% bracket, then the LTCG rate is only 10%, at least until that person fills the 15% bracket. As a result of my understanding (or misunderstanding), I am very confused by this series of posts.Can someone clarify?Regards, JAFO(who has been fortunate to be outside the 15% bracket for awhile now)
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