The individual would then have to prove otherwise to the IRS or risk additional capital gains tax on future investment gains.

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These changes provide an incentive for entrepreneurs to hire additional workers and increase investment in capital goods.

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The terms of the investment have not been revealed, but Keith Rabois, COO of Square, told me that the investment is not motivated by a need for additional capital.

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And the recently signed American Taxpayer Relief Act of 2012 includes extensions of several additional small business tax incentives designed to spur innovation, support capital investment and make it easier to hire new workers.

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Then, beginning in 2013, high-income folks will pay an additional 3.8% Medicare tax on investment income, including capital gains, bringing the federal capital gains tax bite up to 23.8%.

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"Because of Citigroup's complexity, its significant exposure to the global capital markets, and current illiquidity and volatility of some of those markets, additional marks in its investment bank cannot be ruled out, " said Senior Vice President Sean Jones of Moody's.

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The Department of the Interior has provided additional grazing flexibility on federal lands and the Small Business Administration is working to help with access to investment capital and credit in affected communities.

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Under the 2010 health law, high-income households will pay an additional 0.9 percent Medicare payroll tax and a new 3.8 percent levy on investment income such as capital gains and dividends.

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