Tax rates on investment income bound to change after election


With the outcome of next month’s presidential election increasingly hazy, here’s a shred of clarity that investors can cling to: The tax rates they pay on investment income like stock profits and dividends are almost certain to change.

Whether rates rise or fall could affect the prices of some dividend-paying stocks, experts say. Some, mainly Republicans, believe that lower rates would boost the economy and lift markets.

lUnder the current system, people pay the government 15 percent on most dividends and capital gains, the profits from selling investments. Both candidates’ proposals would divide taxpayers into two categories: Those who earn more than $200,000 per year — $250,000 for families filing joint tax returns — and those who earn less.

Read More: http://www.nj.com/business/index.ssf/2012/10/tax_rates_on_investment_income.htm

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