Feb 20, Prior to the Bush tax cuts, the tax rate on capital gains was 20 percent. Dividends were taxed at the same rate as wage and salary income; therefore, most were taxed at percent. InPresident Bush proposed and signed the Jobs and Growth Tax Relief Reconciliation Act. This legislation: Reduced the top tax rate on dividends and capital gains to 15 percent; Accelerated income tax rate reductions; Accelerated the expansion of the 10 percent bracket; Accelerated the increase of the child credit to 1, Dec 25, Prioritized cutting capital gains tax.
What George really cared about, and what became apparent when he himself moved into the Oval Office inwas the tax on capital gains, or the amount stocks and bonds or other assets appreciate over the period that an investor owns them.
Throughout his term, that was the priority--a tax cut that would have sent 60% of the benefit to the. capital gains from 28% to 20%, and the JGTRRA lowered it further to 15%, while also setting the tax rate for dividends equal to the tax rate for capital gains.2 Inthe top 1 percent of filers derived 54% of their income from capital gains, and a. Dec 02, Calls for more cuts followed in Bush proposed reducing taxes on capital gains and dividends. But these were costlier times.