The current long term capital gains and qualified dividends tax is 0% up to the top of the 15% bracket, 15% after that, and then 20% or whatever if you make a whole lot of money. Interest is taxable at ordinary income tax rates.

If what I've read about the new tax plan is correct, all of the above items will be taxed at 1/2 your marginal income tax rate, correct? So 6% up to the top of the 12% bracket, etc for whatever the bracket you end up being in.

Can anyone confirm? I've got end of year tax planning to do and if tax on my EE bond interest is going to get slashed in half I might wait to cash them in and just harvest LTCG at 0% this year.

The cap gains rates stay the same...the income level where they change is slightly different, but not enough to matter.

I'm disappointed in the RINOS.

It was the House plan that had the change to investment income tax. The senate plan that just passed is like you say, much like the old system. I'm guessing the House plan will change to match.

So stupid that dividends are taxed.

It will be short term cap gains where you may be hit since they are taxed at regular income rates. It all depends what tax bracket you are in. If you are married you get the marriage penalty in the 25% bracket.

The top capgain rate is 20%. Or is it? Some with adjusted gross incomes over $200,000 pay -and will pay--an additional 3.8% O--care tax; that's an increase of almost 20%. And now, get this: To appease pols in states with income taxes, the conferees are looking at reducing the top rate of 39.6 as a compromise to eliminating SALT deducts. Really? What about cutting or letting the current 33% rate remain rather than dropping it and going to 35% at the same "entry level." The devil is in the details!

bmks270 said:

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So stupid that dividends are taxed.

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why? It is income. Return of capital is not, but that would reduce your basis and you would be taxed when investment is sold. We are lucky dividends are taxed at a lower rate than our tax bracket. Govt has to run on money from taxes and income is taxable.

FIFO rule apparently cut from final version of bill:

http://www.wealthmanagement.com/industry/fifo-rule-reportedly-cut-tax-reform-bill

OldArmy91 said:

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The cap gains rates stay the same...the income level where they change is slightly different, but not enough to matter.

I'm disappointed in the RINOS.

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Like I've told my Republican friends for years YOU are the RINO, not the Republicans in Congress. The Republican Party is not a conservative party, it is a liberal one that's not BSC Socialists. The fact that you keep expecting them to do something other than what they do is a reflection on you. They've proven beyond all doubt that they will not get this right. Ever.

Frankly I hate the Republicans more than I do the Democrats. With the Democrats I know what they are because they tell me what they are. They are BSC Socialists, except for the ones who are Communists. It's the Republicans who continue to pretend to be something they aren't. The Republicans love big government every bit as much as the Democrats do, they just love it for different reasons and use it to control different things. They aren't for smaller government, just different government. Your challenge is to either be happy voting for "different government" or stop supporting the Republican Party.