McDevitt noted that HNW clients might also eventually face the House plan’s “bubble tax,” a 6 percent surcharge that would effectively create a 45.6 percent bracket for those filing Single with income of $1 million to $1.2 million, and for those married filing jointly with an income of $1.2 million to $1.614 million.
“As short-term capital gains (and things like interest income) would still be taxed at your HNW clients’ ordinary income rate, their benefit or detriment under the new plans depends on their new tax bracket -- and their possible incurring of the bubble tax,” McDevitt said.