Here’s an encore presentation of a HOT: Homa Online Tutorial originally posted before the election.
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Well, Obama got his dream to come true — capital gains rates have been jacked from 15% to 23.8% …. the basic capital gains tax rate went from 15% to 20% … and ObamaCare has a 3.8 non-payroll payroll tax on investment income starting in 2013.
So, the effective capital gains tax rate goes from 15% to 23.8% … a delta of 8.8%.
That 8.8% tax rate increase will cut after-tax capital gains ROIs.
By how much?
Answer: The pre-tax ROI times 8.8%.
Here’s the math …
The Homa Files 