in addition, the capital gains tax decreased from rates of 8%, 10%, and 20% to 5% and 15%. capital gains taxes for those currently paying 5% (in this instance, those in the 10% and 15% income tax brackets) are scheduled for elimination in 2008. however, capital gains taxes remain at the regular income tax rate for property held less than one year. certain categories, such as collectibles, remained taxed at existing rates, with a 28% cap. in addition, taxes on "qualified dividends" reduced to the capital gains levels. "qualified dividends" includes most income from non-foreign corporations, real estate investment trusts, and credit union and bank "dividends" nominally interest.