Written By: John Muir
As we look ahead to 2011, the federal government will allow the capital gains tax rate for individuals in the 28% Ordinary Income Tax Class or above, to increase from 15% to 20%, a 33.3% increase over 2010. Historically, rises in the capital gains tax rate have tended to slow economic growth and reinvestment. This condition is known as the “lock-in effect” where investors avoid taxation by holding appreciated assets. » More: The Capital Gain Tax Rate Change for 2011 Will Present Challenges for Sellers
