Obama wants a fair health care coverage for all americans... why GOP attacks this honorable goal? (842)

I don't know the details of most of our taxes, but here's some info:

This article is about Capital gains tax in the United States. For other countries, see Capital gains tax.

Taxation in the
United States
Income tax · Payroll tax
Alternative Minimum Tax
Estate tax · Excise tax
Gift tax · Corporate tax
Capital gains tax
State and local taxation
State income tax
State tax levels
Sales tax · Use tax
Property tax
Land value tax


In the United States, individuals and corporations pay income tax on the net total of all their capital gains just as they do on other sorts of income. Capital gains are generally taxed at a preferential rate in comparison to ordinary income (26 U.S.C. §1(h)). This is intended to provide incentives for investors to make capital investments, to fund entrepreneurial activity, and to compensate for the effect of inflation and the corporate income tax. The amount an investor is taxed depends on both his or her tax bracket, and the amount of time the investment was held before being sold. Short-term capital gains are taxed at the investor's ordinary income tax rate, and are defined as investments held for a year or less before being sold. Long-term capital gains, which apply to assets held for more than one year, are taxed at a lower rate than short-term gains. In 2003, this rate was reduced to 15%, and to 5% for individuals in the lowest two income tax brackets.
The reduced 15% tax rate on qualified dividends and long term capital gains, previously scheduled to expire in 2008, was extended through 2010 as a result of the Tax Reconciliation Act signed into law by President George W. Bush on May 17, 2006. This was extended through 2012 in legislation passed by Congress and signed by President Barack Obama on Dec 17, 2010. As a result:

* In 2008–2012, the tax rate on qualified dividends and long term capital gains is 0% for those in the 10% and 15% income tax brackets.

The United States is unlike other countries in that its citizens are subject to U.S. tax regardless of where in the world they reside. U.S. citizens therefore find it difficult to take advantage of personal tax havens. U.S. law requires reporting of income from those accounts and failure to do so constitutes tax evasion.

(Partial) History of capital gains tax in the U.S.

The Tax Reform Act of 1986 repealed the exclusion of long-term gains, raising the maximum rate to 28 percent (33 percent for taxpayers subject to phaseouts). When the top ordinary tax rates were increased by the 1990 and 1993 budget acts, an alternative tax rate of 28 percent was provided. Effective tax rates exceeded 28 percent for many high-income taxpayers, however, because of interactions with other tax provisions. The new lower rates for 18-month and five-year assets were adopted in 1997 with the Taxpayer Relief Act of 1997. In 2001, President George W. Bush signed the Economic Growth and Tax Relief Reconciliation Act of 2001, into law as part of a $1.35 trillion tax cut program.

1. ^ "Tax Law Changes for 2008 – 2017." Kiplinger's. <www.kiplinger.com> Published March 2009. Accessed 28i August 2009.
2. ^ a b c d e f g h i j Joseph J. Cordes, Robert D. Ebel, and Jane G. Gravelle (ed). "Capital Gains Taxation entry from The Encyclopedia of Taxation and Tax PolicyProject". Retrieved 2007-10-03.
3. ^

*Part in large green font is esp. for OP

The largest single (individual) taxpayer in US history is Elvis Presley who, in 1964, paid $4.5 million in tax on an income of $5.5 million