Will 0% cap. g. in the two lowest tax brackets be going away under the new tax plan?

[FANOFJESUS]

Will 0% capital gains in the two lowest tax brackets be going away under the new tax plan?

 

[Midpack]

Nothing has been passed yet so there are several proposals that may/not come to pass. I’d wait and see but here’s a recent version from one source:

Tax rates on long-term capital gains and dividends
For 2018 and beyond, the GOP bill would retain the existing three tax rates on long-term capital gains and qualified dividends: 0%, 15% and 20%. The rate brackets for 2018 would be as follows, based on taxable income (gross income, including capital gains and dividends, minus allowable write-offs).

Married joint-filers

• $0 to $77,199: 0% bracket (almost identical to bracket scheduled for 2018 under current rules).

• $77,200 to $478,999: 15% bracket (ditto)

• $479,000 and higher: 20% bracket (ditto)

Heads of households

• $0 to $51,699: 0% bracket (almost identical to bracket scheduled for 2018 under current rules).

• $51,700 to $452,399: 15% bracket (ditto).

• $452,400 and higher: 20% bracket (ditto).

https://www.marketwatch.com/story/h...middle-class-and-wealthy-taxpayers-2017-11-03

 

[Al18]

According to this article there is no change in the capital gains rates https://www.kitces.com/blog/tax-cuts-and-jobs-act-2018-house-gop-tax-reform-proposal/

 

[audreyh1]

The cap gains tax brackets posted above are correct, however for incomes above $250,000 for MFJ, you have an addition 3.8% Net Investment Income tax on long-term capital gains which means effectively there are 4 brackets, with 18.8% tax above $250K and 23.8% above $479K.

The Net Investment Income Tax is still there in the proposal according to the Kitces write-up.

 

[oldphd]

Let's say I'm MFJ at an income between $77,200 and $89,999.

My marginal regular income tax rate of 12% is less than my marginal capital gains rate of 15%.

Is this correct? Am I missing something here? Seems like the intention has always been to have income taxed at a higher rate than capital gains.

 

[MichaelB]

There's a thread on the tax plan with lots of information. To avoid confusion, lets keep the discussion going in just one place, there. http://www.early-retirement.org/forums/f52/proposed-tax-plan-89102-8.html#post1961133