Econintersect: At the end of 2012:
- the Bush tax cuts expired. Dividend income would no longer be taxed at the same rate of capital gains – but would return to be taxed at the rate of ordinary income;
- the employee portion of capital gains would return to the tax rate of 6.2% (from the temporarily reduced rate of 4.2%);
- and two Medicare surcharges were implemented on joint filers with incomes above $250,000.
How did companies and individuals respond to these tax increases?