Will the IRS suspend taxation on dividend and interest income in the coming years?

N M: Will the IRS suspend taxation on dividend and interest income in the coming years?
A few months ago I read on the net something in relation to this, and haven’t seen any more about it. The story went that for the next threwe to five yrs. these incomes were going to be exempt from taxation. Now I wish i had printed it out or at least saved it.

Answers and Views:

Answer by Wayne Z
The IRS doesn’t decide on what is and what is not taxed.

Congress does.

To the best of my knowledge, there are no actions in Congress to suspend the taxation of dividends and interest.

Answer by v b
Interest is fully taxable at ordinary income rates (same as wages).

Dividends are either regular or qualified. Regular dividends are taxed at ordinary income rates. Qualified dividends are taxed the same as long term capital gains.

For 2008, 2009 and 2010, if you total income is within the 10 and 15% tax brackets, the rate for qualified dividends is ZERO. If your income is in the 25% or higher tax bracket, they are taxed at 15%.

Answer by Judy
Congress could pass a law like that – the IRS doesn’t make the laws. It’s probably pretty unlikely that will happen.

What you might have read is that for the next couple years, the tax rate on capital gains for people in a 15% bracket or lower will be zero instead of 10%