"Taxmageddon" is coming. Unless Congress extends the current rates or reaches an agreement on tax reform, dividends will then be taxed as ordinary income at a marginal rate as high as 39.6 % and net capital gains will then be taxed at 20%. For high-income taxpayers, a 3.8% Medicare surtax will be added to the taxation of net capital gains, dividend income, interest, and other investment income, bringing the highest marginal rate to 43.4%.
Kahn, Douglas A., co-author. "Retirees Beware: Don't Worry About the British, 'Taxmageddon' is Coming." L. W. Waggoner, co-author. Law Quad. Notes 55, no. 2 (2012): 50-1. (Adapted from "Retirees Beware: Don't Worry About the British-- 2013 is Coming." L. W. Waggoner, co-author. Tax Notes 136, no. 1 (2012): 107-12.)