Indeed. But consider: except for very high income households, the LTCG tax rate is never more than 15%-- and federal income tax brackets don't go lower than 10% and even just social security payments will move people into 12%. Many ibond alternatives yield qualified dividends (=LTCG rates). For anyone with income under 41k (81k married) long term the LTCG rate is 0. A rate of 0 is wayyy better than a rate of 12% but deferred.
State taxes are a bigger difference but really just for the few states that have higher income tax rates... and even those they're only really high for high incomes.
State taxes are a bigger difference but really just for the few states that have higher income tax rates... and even those they're only really high for high incomes.