1990: Preferential rates for capital gains were restored when the maximum tax rate on ordinary income grew to 31 percent, because capital gains remained taxed at 28 percent.14
1993: The maximum rate applicable to ordinary income grew to 39.6 percent; but capital gains remained taxed at 28 percent.15
1997: Congress reduced capital gains tax rate to 20 percent and gave taxpayers in the 15 percent bracket a capital gains tax rate of 10 percent.16
2003: The Jobs and Growth Tax Relief Reconciliation Act of 2003 reduced the tax rate for “net capital gain” from 20% to 15% and to 5% for taxpayers in the lower brackets.17
2008: The 5 percent capital gain tax for taxpayers in the lower brackets will be reduced to zero.18
2011: Absent further action by Congress, the capital gains rates will revert to their pre-2003 levels