Urgent question about the potential Senate deal [View all]

[Nancy Waterman]

The current proposal is increased taxes on incomes over 400/450,00. There is also an increase for capital gains over 400/450,00. My question is: are these separate? In other words, if someone makes 400,000 in earned income and another 400,000 in cap gains, does he then get an 800,000 exemption from higher taxes? Or is it combined, so that any combo of 400,000 causes higher rate to come in? I think it should be the combined income but I fear they are separate and will therefore give a lot of the 1% exemptions from higher taxes with incomes of 800 to 900,000. Anyone know the answer? A lot of wealthy people combine these two types of income.