Senate Bill More than Doubles Tax Rate

Senate Bill More Than Doubles Tax Rate on
Pensions, Charities, and Colleges

"The Senate this week is taking up the tax extenders package. According to the Congressional Budget Office, it raises net taxes by $47.5 billion. Like its House counterpart, this bill is a clear violation of the Taxpayer Protection Pledge. ATR will be keyvoting against this bill in our annual Congressional scorecard.

One provision that's getting a lot of notice is the tax hike on pensions, charities, and colleges (the "carried interest" tax hike). We wrote some background on this for the House bill.

The Senate version slightly changes the tax hike involved. Under the Senate bill, a portion of capital gains from some investment partnership profits will be taxed as ordinary income. What portion depends on the year, and whether the asset in question was held for at least seven years. Here's the percentage of capital gain which will be wrongly treated as ordinary income:"

Read more: http://www.atr.org/senate-bill-more-doubles-tax-rate-a5043#ixzz0qMJR1UMP