Quote:
Originally Posted by realcoray
In terms of tax impact for those of us making under 200-250k, I wouldn't anticipate any notable change unless you are into real estate, where the capital gain taxes going up could impact you (you'd be making a profit, but keeping less of it).
Keep in mind that if actual tax rates go up to levels from the 90s, it's still progressive meaning that your taxes would go up a few percentage points for income above a certain level. Let's say I make 205k and the tax rate for income over 200k goes up by 2%. I pay just 2% more on the 5k as a result of that increase.
Obviously in the case of some of these types of gains, or your situation the actual increase may be higher and for investment purposes you have options. Greg has talked about municiple bonds which may be an option since they are less/not exposed to these shifts. Chances are though that many other people will be thinking the same thing and the yields may drop in turn making it effectively the same as it was in terms of actual yield compared to other bonds.
Also, to keep things in perspective note that tax rates right now are historically low. Just about 50 years ago, the top tax rate was > 90%.
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Yes that basically what i was getting at... purely from a tax perspective this is a better outcome for 95% of the population.. So why is everyone crying about the taxes that come form Romney losing.. confused...
