New Tax Rates
Saturday, December 4th, 2010 | Comments Off on New Tax Rates
We were just reminded that capital gains tax rates are set to increase from 15% to 20% if the Bush tax cuts are not extended. Last time the capital gains tax rate went up, which was on Jan. 1, 1987 (the rates increased from 20% to 28%), investors chose to sell stock and realize their gains at the lower tax rates.
What this means is that if Congress does not decide to prolong the tax cuts, we might see a market sell-off. Better set stops on your stock market holdings!
