Most people have been wondering about the issue of capital gains tax and directly the long term investments, this is applied to assets that are held for over one year and these are taxed at a lower rate that income. This capital tax goes up and down every era as it is not as steady as it should be, in the era of Reagan it was 28%, in the time of the Bush administration it was cut in half to about 15% and also now in this present day of Obama's presidency you are seeing a hike in it by about 8-9%, which is 22.9 percent for the capital tax and this works out to a 52% increase for the previous 15% tax rate.
During the era of Reagan the capital gains tax went up by 40%, this was because of the increase from 20 - 28%. These very high rates could in turn help to decrease to deficit for 2011 by $12.2 billion and 2014 by about $19.7 billion and so on. The whole capital gains tax is something not to play with as it is never yet steady and you wonder if and when they are going to put a hike on it.
The issue of the this tax is sparking heated debates and having people wonder if this is a positive or a negative change. The best thing to do is take notice of it before it gets too late, if there is an event of a tax increase then you will see property selling rapidly to and with a slit decrease in the prices.
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