The capital gains tax in America

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A capital gains tax is a tax applied to profit gained from the sale of a property or an investment. The more common capital gains are from the sale of stocks, bonds, precious metal, and the like. In the United States, the government places a relatively high marginal tax rate to capital gains as a means to foster a stronger local economy and increase worker wages.

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Currently, the tax rate on long-term capital gains income is 23.8 percent, exclusive of state-level rates, which range from zero to 13.3 percent. This means that companies and individuals can face a capital gains tax as high as 28.7 percent. This rate exceeds the global average of the 18.2 percent tax faced by taxpayers. This is based on research from the Organisation for Economic Cooperation and Development (OECD) that promotes greater transparency in tax matters by studying the banking and tax industries from 34 industrialized countries.

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This places a high burden on taxpayers, and many legislators believe that this may have a negative long-term effect on the competitiveness of the country. Because this tax deducts for a single purchase, certain prejudices and biases regarding savings may occur. This may create a snowball effect of corporations not having enough capital on hand to hire new employees which in turn slows down economic growth.

Many analysts and investors are still debating whether it would be fair to tax capital gains and most stock dividends at lower rates than earned income. The opinions vary, with no single tax analyst agreeing with one another. It is clear, however, that this is a relatively controversial issue and should be discussed with a tax representative before making any type of decision.


 Wall and Associates Inc. has helped hundreds of clients understand their taxes better by providing them with the right information and proper guidance. As one of the nation’s leading tax representation firms, it recognizes the value of being an educated taxpayer. For more information regarding the company’s services, visit its official website.

Competent tax representation: Relief from the complicated tax system

A few months before April every year come reminders to prepare for the deadline for filing tax returns. The heads up is intended to prevent errors and their corresponding penalties from the IRS. An individual’s situation, tax dues, and exemptions can also change from time to time, so people are advised to either find resources to help them understand what they need to do or to seek help from their financial adviser.

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Despite all the reminders, however, some people still neglect to file and pay their tax dues. There have been cases where individuals have been negligent for so long that they end up paying a large sum in accumulated penalties and interest. This problem would have otherwise been avoided if they had simply sought competent tax representation.

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Still, individuals who have been contacted by the IRS or the Department of Taxation for matters concerning their taxes still have some avenues for relief. Instead of immediately agreeing to the stiff payment plans offered by the IRS, they can still seek the support of tax representatives and negotiators who can argue on their behalf to make their tax dues more manageable.

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Wall and Associates Inc. is a leading professional tax representation and negotiation firm which helps people solve both federal and state tax problems. For more information about the company’s services, visit www.wallandassociates.net.