For this assignment present both positive and negative consequences of the proposed tax law change with
relation to the topic stated below: Assume that this is presented to your most valuable client.
Capital gain tax: For taxpayers whose income exceeds $1,000,000, capital gains may become taxed at
ordinary income rates. Under the current draft of the full proposal, they would nearly double from 23.8% to
43.4% when accounting for the Net Investment Income Tax (Links to an external site.) of 3.8%. While the
increase in the capital gains rates may end up landing around the 25% to 28% range based on the political
climate, there is still an expectation that rates will increase.
https://www.irs.gov/newsroom/questions-and-answers-on-the-net-investment-income-tax