Capital Gains Tax Rates

[FarmerGreen]

What are the capital gains tax rates for 2010 and then for 2011 and beyond for the sale of real estate.

[JON]

Who knows for 2011

but the Sec of Treas on TV last week said the President favored the max capital gain rate should go to 20% for 2011. I do think the USA has to either collect a lot more money or cut a lot of government spending. We are nuts if we do make our elected officials tell us exactly which they are going to do and how. Either way or combination of both it will slow the economy down, but this current direction (last 40 years) is pushing too much debt to future generations who do not have a chance.

[ChEAr$]

Stop digging

National debt reminds me of that old saw, "If you're in a hole, the first thing you do is....
stop digging."

But these days it seems the gobment has a new solution: "Get a bigger shovel".

[Nashville]

Lesson from History

There is a general feeling among some in Congress that favored rates for capital gains and dividends favor the wealthy. They are referred to as the "Bush tax cuts" for the "rich."

There can be no question that this is true on paper, for those who do the math. However, in my career I have survived three upheaval movements to eliminate capital gains favored rates. All of them so far have had disastrous results.

Real Estate, Construction, Jobs, all these things come to a standstill. Each and every time Congress does this, they come rushing back a year or two later to save the economy by lowering capital gains rates again. Those who cannot learn from history are condemned to repeat it.

The companion to the adminsitration's plan to increase capital gains rates is to treat dividends just like ordinary income. i.e. penalize those who own stock. What do you think this will do to Dow Jones?

The "Santa Claus" mentality of prior Congresses have elected to borrow rather than make the tough choices. But if they choose to tamper with capital gains and dividends, the recovery will be in jeopardy.

[OtisMozzetti]

the planned political arguments

Wall St. Journal today said that the Democrats plan to focus on a Senate argument that Democrats want to extend the low rates for low income folk and for some middle income groups, only their Republican opposition won't allow it to get done with 60 votes because the wealthy aren't to be included in the extension of low rates.

Meanwhile, Republicans plan to argue that Democrats are trying to raise taxes by not voting to extend low rates that were passed into law back in 2001 and in 2003.

All this is supposed to play out before the November election; so don't plan to see any action before then.