Capital gain tax-Discussion

    For this assignment present both positive and negative consequences of the proposed tax law change with relation to the topic stated below: Assume that this is presented to your most valuable client. Capital gain tax: For taxpayers whose income exceeds $1,000,000, capital gains may become taxed at ordinary income rates. Under the current draft of the full proposal, they would nearly double from 23.8% to 43.4% when accounting for the Net Investment Income Tax (Links to an external site.) of 3.8%. While the increase in the capital gains rates may end up landing around the 25% to 28% range based on the political climate, there is still an expectation that rates will increase. https://www.irs.gov/newsroom/questions-and-answers-on-the-net-investment-income-tax