"58 Percent Increase in Capital Gains Taxes is Coming"

The Tax Relief, Unemployment Insurance Re-authorization and Jobs Creation Act of 2010 extended the Bush era tax cuts until the end of 2012.  Beginning in January 1, 2013, if no further action is taken by Congress, the capital gains tax rate will revert from the current 15 percent rate back to the former 20 percent that was in effect prior to 2003.  In addition, the national health care reform legislation that became law during March 2010, imposes a new 3.8 percent tax on certain investment income.