Geither Supports 20% Tax Rate on Dividends and Capital Gains

Good news for investors. Treasury Secretary Tim Geithner says the White House supports a 20% tax rate on dividends and capital gains. There was concern that they were looking to raise these rates to 39.6%.

Congress currently is planning to extend most of the Bush breaks – particularly those for middle-income earners – for some period, perhaps only a year or two. But budget rules that lawmakers passed earlier this year anticipated the Bush-era breaks for higher income earners would expire immediately. That would mean the tax on dividends for higher earners would return to the pre-Bush ordinary income rate. That rate is expected to rise to 39.6% next year.

A 20% tax rate is an increase from the current 15% rate but it’s a lot better than what it could have been

Posted by on July 9th, 2010 at 10:05 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.