Re:We are publishing the tax secrets of the .001%
by HWR_14 on Tuesday June 08, 2021 @11:30PM
(#27443914)
It's both a magic number and a threshold. Married filing separately is just 1/2 of married filing jointly, which is how it should be.
Re:We are publishing the tax secrets of the .001%
by dragonwriter on Tuesday June 08, 2021 @11:37PM
(#27443954)
> It's both a magic number and a threshold
Its a threshold, but not one below which capital gains stops mattering, which was the significance falsesly ascribed to the “magic number".
If you had cited the bottom of the 15% bracket instead of the top as the magic number below which cap gains don’t matter, well, “magic” would still be overdramatic but you would at leaast have something of a point. But that’s close to an order of magnitude lower.
No, its not.
The transition point between the top (20%) and middle (15%; the bottom is zero) marginal rate of long-term capital gains rates are either exactly the top or bottom of that range for 3 of 4 tax filing statuses (you left off married filing separately, which is much lower than even the low end), but that’s not a “magic threshold” by any reasonable definition.