We’re back with more news on the recommendations of the Presidential Advisory Panel on Federal Tax Reform (PAPFTR). While sequels can often be a disappointment to fans and critics alike, we assure you that you’ll continue to receive the highest standards of tax newsletter excellence for the duration of our series. Just like Rocky in his classic bout with Clubber Lang, we will rise up, defy incredible odds and maintain the “eye of the tiger.” (Together now! “Deh……Deh, Deh, DEH…...Deh, Deh, DEH…...DEH, DEH, DEH”)

One of the really cool ideas presented by PAPFTR would greatly increase the attractiveness of owning stocks. Right now, the top rate on long-term capital gains is 15%. But one of the proposals presented by PAPFTR would allow 75% of the sale of stocks to be completely excluded from tax, with the remainder being taxed at ordinary income rates.

Another great recommendation is to completely kill the Alternative Minimum Tax (AMT), which is threatening to negatively affect 21 million people next year unless Congress changes the law.

Back again next week with Part 4 – PAPFTR’s uncool ideas.