Example
The preferential tax rate on long-term capital gains: Benefits as a percent of after-tax income
| Income bracket | Preferential tax rate on long-term capital gains and dividends |
|---|---|
| Bottom 20% | 0% |
| 21–40th | 0 |
| 41–60th | 0.1 |
| 61–80th | 0.2 |
| 81–90th | 0.2 |
| 91–95th | 0.4 |
| 96–99th | 1 |
| Top 1% | 5.9 |

Source: Tax Policy Center
Tax Policy Center, Individual Income Tax Expenditures [online database], T18-0183, October 2018. Data are for 2018.
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