We Expect Increased Capital Gains Tax Rates
Regardless of who wins in November, and in spite of Governor Romney’s pledge to eliminate capital gains taxes on those earning less than $250K, we think it inevitable that taxes on capital gains will rise, perhaps substantially, in the years ahead. The US budget imbalances can just not be tamed by cuts alone, and capital gains tax rates are already at historical lows.
This Bloomberg Businessweek article, discussing recent findings that lower rates do nothing to stimulate economic growth and a recent hearing in Congress, add fuel to that conviction. Once the Presidential election is decided, we are going to make some very quick decisions with clients who may be sitting on large unrecognized gains in their portfolios.Tags: taxes