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To: GregoryFul
I have considerable after tax savings that would suffer an immediate haircut in value due to the change in tax on income vs. tax on spending.

IN what form? Stock? Long term capital gains will not be taxed. Bonds? No more tax on interest. Savings account at banks? No more tax on interest. Mutual funds? Long term gains no longer taxed. Capital gains distributions, dividends, interest no longer taxed. REal estate? No capital gains taxes even on rental property.

In most scenarios of "considerable after tax savings" there is probably a long term capital gain. Immediate gain of 15% on the increase. WHat form of investment do you have?

306 posted on 10/21/2006 9:44:03 AM PDT by groanup (Limited government is the answer. What's the question?)
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To: groanup

He he he the gain would be 17.64%. A $100k pretax asset is actually worth $85k. Increasing it's value from $85k to $100k is a 17.64% increase lol.


310 posted on 10/21/2006 9:49:27 AM PDT by Principled
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