In fact, if you are paying up to a 33% combined federal and state tax on capital gains as you may be in California, you are paying more than virtually anyone else in the world. That will hit you in your pocketbook. Plus, experts say the impact is bigger than that. Such a high tax rate has long-term negative implications for the economy, for people save and invest less.
Meanwhile, they say, capital seeks higher returns in other countries. See The High Burden of State and Federal Capital Gains Taxes. Take a look at how we stack up:
|Rank||Country/State||Capital Gains Rate|
|19||District of Columbia||29.1%|
Wow. That's pretty steep.