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Posted by: Im SteelAssassn
"It also allows taxes on capital gains and dividends to go up, and extends benefits of the unemployed."
So, will that balance out/be profitable or will these increased benefits put the US further into debt?
Nope, not fully. Last year's cost of unemployment extension was about $40 billion.
Total tax receipts from capital gains each year is about $80-100 billion - but this increase only hits the new top income bracket - $450,000 or more in income. But of course, the largest portion of capital gains taxes comes from this group anyway.
If the capital gains tax rate hit everyone, not just the new top wealthy bracket, it would have probably paid for it. But people like me won't be hit by it and I pay a lot of capital gains each year.
[Edited on 01.02.2013 7:11 AM PST]